In summation, opinions varied and not all corporates are equal. NCUA believes that allowing credit union service options from a choice of corporates may help prevent credit unions from seeking these services outside the credit union system. Applications will be accepted throughout 1998 from community development credit unions that document thorough plans for funds to provide basic financial and related services that result in increased income, ownership, and employment for residents in their communities. When credit unions apply directly or through a corporate agent for a loan, the rule change permits the CLF the option of taking either a blanket security interest or a first priority security interest in specific credit union collateral with a net book value at least equal to 110 percent of the amount owed. Final insurance conversion approval is subject to an approving vote by the members.
Final approval is contingent upon an approving membership vote.
The Board approved a request from Kitsap Federal Credit Union , Bremerton, Washington, to convert from occupational to a community charter.