WASHINGTON (3/7/16)--Can multiple-group federal credit unions merge with each other while still complying with the Federal Credit Union Act and the National Credit Union Administration’s (NCUA) rules and regulations? According to Michael J. McKenna, NCUA’s general counsel, it is possible as long as a number of conditions are fulfilled.
McKenna responded to a question from a multiple-group credit union wanting to partner with another multiple-group credit union. Both credit unions were interested in maintaining their local identities and their roles in local decision-making of the credit union.
The conditions outlined by McKenna are:
The Credit Union National Association’s (CUNA) CompBlog looked into this question in a recent entry.
“If your credit union is looking for a 'win-win' merger option that allows those credit unions that choose to partner with others to retain their identity and still have a voice in the direction of the credit union, then this letter is official confirmation that the network credit union option is a permissible merger/charter option under the Federal Credit Union Act, NCUA’s Field of Membership Manual, NCUA’s existing Letters to Credit Unions, and the Office of General Counsel legal opinion letters,” wrote Nancy DeGrandi, manager of federal compliance information and research for CUNA.
CUNA’s Compliance Community contains, in addition to CompBlog, a number of resources and networking opportunities for credit union compliance professionals. Compliance is a key component of CUNA's 360-degree advocacy approach to removing barriers for credit unions.