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Conversion of Insured Credit Unions to Mutual Savings Banks

NCUA · final-rule · Published 2004-02-25 · Effective 2004-03-26 · 69 FR 8548

Document

Document number
04-4075
Federal Register citation
69 FR 8548
CFR reference
12 CFR 708
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US National Credit Union Administration
Publication date
2004-02-25
Effective date
2004-03-26

Abstract

NCUA is updating its rule regarding conversion of insured credit unions to mutual savings banks. This amendment requires a converting credit union to provide additional information in the notice to members of its intent to convert. Specifically, the credit union must disclose any economic benefit a director or senior management official of a converting credit union may receive in connection with the conversion. A converting credit union must also disclose how conversion to a mutual savings bank will affect members' voting rights, and how any subsequent conversion to a stock institution may affect ownership interests. NCUA believes this amendment enhances a member's ability to make informed decisions about the conversion without increasing the regulatory burden for converting credit unions and helps converting credit unions to more fully understand what NCUA expects to be included in the notice to members.

Source

Authoritative
Federal Register document
Machine
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