ALEXANDRIA, Va. — NCUA has determined that in cases where a state chartered, federally insured credit union is merging with a state chartered, federally insured mutual bank, the merging credit union does not have to follow the notification or ballot procedures that a CU would otherwise have to follow in a CU-to-bank charter conversion.
|NCUA determined that these sorts of mergers are not directly covered in the agency's regulations, according to NCUA Director of Public and Congressional Affairs John McKechnie. However, any credit union which sought such a merger would still have to follow the procedures for that state and have its merger application approved by the NCUA Board.
|The question arose when, in Massachusetts, for the first time ever in the Commonwealth, a state chartered credit union, the $98 million Northeast Community Credit Union, began proceedings to merge with a local mutual bank in the same town. McKechnie would not comment on the procedures the board would use to review the CU's merger application, noting that a complete application had not arrived yet.
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