Conversion to a State Chartered Credit Union Frequently ...

Conversion to a State Chartered Credit Union Frequently Asked Questions

1. Why does My Community want a charter change? Conversion to a state charter will allow My Community the ability to expand our service area to include additional counties in Texas. We currently serve the Midland and Ector Counties. The expanded service area will allow us to diversify our service area and reduce our reliance on the petroleum industry with its ups and downs. A state charter will allow My Community to reach, serve and help more people, especially those who may be unserved, with limited access to financial services and those of modest means. It will generate additional resources, improving efficiency, which will provide more product and service options, competitiveness and expanded delivery systems. As a state chartered credit union, My Community can more easily work directly with regulators and legislators to improve regulations and laws on behalf of all credit union members.

2. Will my accounts still be federally insured? Yes, all member accounts will continue to be insured by the National Credit Union Share Insurance Fund (NCUSIF), an agency of the federal government.

3. Will I have the same voting rights under a state charter as I have under a federal charter?

Yes, under state regulations, you will continue to elect the Board of Directors and vote in all other special elections related to credit union matters as you do under federal regulations.

4. Will my membership be affected? No, your My Community account number(s), membership and privileges will remain the same, and there will be no negative impact on the products or services that My Community offers you. You will experience no change in My Commuity's operation under a state chartered credit union. You will still be a member/owner of My Community and our commitment to you and the community will remain unchanged.

5. What will change with a charter conversion? Our regulator will change. Upon conversion, we will be regulated by the state rather than the federal government. Changing to a state charter will require us to remove the word "federal" from our name and logo.

6. As a state chartered credit union, will My Community have the same tax-exempt status as a federal charter?

We will have to pay state sales taxes. However, we will save money in NCUA regulatory fees, which would help absorb some of the difference.

7. Will I have to order new checks when My Community's name changes? No, you may use your existing checks until your supply is depleted. When you need to reorder checks in the future, your new checks will reflect any changes.

8. Will I receive a new member number? No, all of our account numbers, personal identification numbers (PINs), etc. will remain the same.

9. Will my credit and debit cards still work as normal? Yes, the actual processing behind My Community's credit and debit cards will remain the same. However, you will receive new cards reflecting the change upon the expiration of your existing cards. In the meantime, your cards will continue to work as always.

10. If I have direct deposits, automatic transfers or preauthorized debits to my accounts, will any of those be affected by converting to a state charter?

No, all direct deposits, funds transfers and preauthorized debits will continue to and from members' accounts as set up, with no interruptions or changes.

11. Will My Community's rates and fees change with a conversion to a state charter? No, our deposit and loan rates, as well as the current fee structure, will not be affected by converting to a state charter. My Community's Board of Directors and Senior Management have no plans or desire to make any changes in our rate or fee philosophies that would negatively impact members because of this change.

12. Will My Community continue to support the community? Yes, we believe it is important to have strong ties with the community. We will continue to expand our outreach in support of local growth and education.

13. Will My Community still support local business partners? Yes, additional resources to improve our delivery systems in the future could include development of new delivery channels, branch and ATM expansion which will provide added convenience and service to our business partners.

14. Will My Community remain headquartered in Midland? Our headquarters and primary functions will remain in Midland.

15. Does the Board of Directors support the charter conversion? Yes, after careful deliberation, My Community's Board of Directors voted to convert to a state chartered credit union. The Board of Directors recommend that every member vote "YES" in favor of this conversion. The Board of Directors believe that converting to a state chartered credit union is in the best long-term interests of the credit union and its membership.

16. What do I do now? Vote "YES" on the ballot that you received via mail to convert to a state charter and return it in the pre-paid postage envelope.

17. When will the conversion take place? Later in 2016.

18. Can I drop off my ballot at any of the credit union offices?

No, there are only two ways to vote. You may either 1) mail your ballot to Waypoint Advisory Services at the address below or 2) attend the meeting at our office on October 24, 2016 at 2pm and cast your vote in person. This is the only way to ensure that the vote can be certified by our third party firm.

Waypoint Advisory Services, Inc. 2100 S. Polk Amarillo, TX 79109

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download