Quick Charter Change
OKd For CU Mergers
ALEXANDRIA, Va.-NCUA last week ruled it can approve a charter change for a healthy credit union in order to facilitate its merger with another healthy CU. The new legal opinion letter means NCUA has the discretion to approve a voluntary merger of two healthy, multiple common-bond CUs. Under previous practice, NCUA would approve mergers of two CUs of disparate FOMs only if one was troubled.NCUA has discretion under the Federal CU Act to approve a change to a credit union's charter to facilitate a voluntary merger with another healthy credit union, the agency said in its letter. The practice has been unsuccessfully challenged in court by the American Bankers Association, which asserts the provision in NCUA's rule permitting the voluntary merger of healthy, multiple common-bond CUs containing select groups of fewer than 3,000 members violates provisions of the 1998 CU Membership Access Act.
ATM Disclosure Suit
Dismissed By Judge
PHILADELPHIA-A federal judge has agreed to dismiss an ATM disclosure suit brought by a Pennsylvania man against Philadelphia FCU under the Electronic Funds Transfer Act, one of 20 ATM suits filed by the serial plaintiff over the past 12 months. In winning its case the $850-million credit union proved that the ATM in question, in Bloomsburg, Penn., did in fact, have the fee disclosure posted on the outside of the machine, as required under the EFTA, despite Plaintiff Gerald Reviello's claim to the contrary-and produced a photo to back up its defense. An earlier EFTA suit filed by Reviello against Pennsylvania State Employees CU was also dismissed because of proof that the fee disclosure had been attached to the ATM at sometime.
Ore. CUs Apply To Hold Govt Deposits
PORTLAND, Ore.-Five Oregon credit unions have submitted the required notice and paperwork with the Oregon State Treasury to allow them to accept and hold large government fund deposits under a new program designed to give Oregon government agencies more options for deciding where to keep funds. The program, the Oregon Credit Union Public Funds Collateralization Program, will start in April 2013. Currently, only qualified banks can accept public deposits beyond the FDIC insured limit, which is $250,000 per depositor.
NCUA Liquidates Trinity CU
TRINIDAD, Colo.-Trinity CU here has been liquidated by NCUA and its assets assumed by the $82-million Power CU, Pueblo, Colo. TCU had $4.1 million in assets and 1,200 members.
Economic Update Video Released
ALEXANDRIA, Va.-NCUA has released the latest edition in its free YouTube economic update series. The three-part installment features an overview of the current state of the national economy; a review of where the economy is headed and its impact on CUs, and a brief discussion about the changing institutional environment around emergency liquidity.
For info: www.ncua.gov.
AAFCU Offers EMV Travel Prepaid Card
FORT WORTH, Texas-American Airlines FCU has become one of the first credit unions to offer EMV (Europay, MasterCard and Visa) Travel Prepaid Cards, incorporating both EMV chip-and-PIN technology and the standard magnetic stripe. The card product is specifically designed for members who are working, traveling, living or studying in Canada, Europe, and other regions of the world where EMV Chip Card technology is the preferred method of payment. The card features an embedded microchip that aids in reducing fraud. AAFCU said the new EMV Chip Card also allows a member to travel without having to obtain foreign currency prior to the trip.
Freedom Launches 0.99% Visa
PHILADELPHIA-Freedom Credit Union has announced a special low 0.99% six-month rate for its Freedom Visa card. The rate will be available to members without a card and the credit limit will be set at $20,000. There is no annual fee and members will not be charged a fee for balance transfers or cash advances. The credit union said the special offer will be convenient for people wanting to cover unplanned expenses and make much-needed home repairs.
CORRECTIONS & CLARIFICATIONS
An item in the Oct. 2 issue incorrectly reported the status of an NCUA proposal on defining the asset size of a "small" credit union and "rural district." Both of those proposals are out for comment and have not been formally adopted as rules by NCUA.