Founded by credit union executives Bucky Sebastian, Jim Blaine and Randy Chambers, the National Center for Member Trust provides information for members-at-large of credit unions facing CU-to-bank conversion attempts.
This writer has no doubt that the American Bankers Association and other interest groups which are friendly to bank conversions intensely dislike this organization. After all, CU-to-bank conversions are not being demanded by rank-and-file CU members-at-large. CU-to-bank conversions are being pushed under the euphemism of "charter choice" by small groups of insiders who really don't want to discuss their reasons or motives.
I comprehend many of the "charter choice" business arguments cited in favor of CU-to-bank conversions, but believe that these conversions ought to be regulated and taxed.
Federal law does not currently compel a credit union which converts from a CU to a bank charter to disperse the "members' equity" to the members. This loophole needs to be eliminated by an Act of Congress. In a CU-to-bank conversion, the "members' equity" accumulated during decades of tax-exempt not-for-profit status ought to be paid out to the member-owners of the organization.
Congress needs to amend the Internal Revenue Code to impose these nominal requirements on all Federal and State credit unions as a condition of continuing to receive 501(c)(1) or 501(c)(14) tax-exempt status.
The Member Trust web site offers useful information about basic differences between credit unions and banks, and is a step in the right direction.
This writer has no doubt that the American Bankers Association and other interest groups which are friendly to bank conversions intensely dislike this organization. After all, CU-to-bank conversions are not being demanded by rank-and-file CU members-at-large. CU-to-bank conversions are being pushed under the euphemism of "charter choice" by small groups of insiders who really don't want to discuss their reasons or motives.
I comprehend many of the "charter choice" business arguments cited in favor of CU-to-bank conversions, but believe that these conversions ought to be regulated and taxed.
Federal law does not currently compel a credit union which converts from a CU to a bank charter to disperse the "members' equity" to the members. This loophole needs to be eliminated by an Act of Congress. In a CU-to-bank conversion, the "members' equity" accumulated during decades of tax-exempt not-for-profit status ought to be paid out to the member-owners of the organization.
Congress needs to amend the Internal Revenue Code to impose these nominal requirements on all Federal and State credit unions as a condition of continuing to receive 501(c)(1) or 501(c)(14) tax-exempt status.
The Member Trust web site offers useful information about basic differences between credit unions and banks, and is a step in the right direction.
