The California Department of Business Oversight said it will model the procedures Monterey Credit Union will have to follow to convert to a mutual bank charter on existing parts of California law even though state statutes are silent on credit union to bank charter conversions.
Roughly 3,300 of the Monterey Credit Union's members voted in July in favor of the charter change.
Alana Golden, a CDBO spokesperson, declined CU Times' request for an interview but said the agency was using existing California law as a guide.
Recommended For You
Specifically, the CDBO has been using Section 5, which addresses credit unions, Section 1.6, which addresses charter conversions of depositories but does not mention credit unions by name, and Section 2, which addresses conversions of state chartered savings associations.
Section 5 addresses many aspects of credit union operations including conversions of a state chartered credit union into a federally chartered one, according to the CDBO.
Golden did not provide any additional details about how the agency might modify these statutes to fit the $212 million Monterey CU's specific situation as a privately-insured, state chartered credit union seeking to convert to a state chartered mutual bank.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
