Charter Conversion Q&As PDF Print E-mail

 

Q: Why was the change approved?

A: Currently, because we are a federally insured credit union with a State charter, we are subject to oversight by both Federal and State regulators.  Reporting to two different regulators is extremely inefficient and nearly doubles the amount of time and preparation our employees must spend to accommodate two different regulators.  These resources will now be spent directly benefiting members. And, the switch to a Federal charter will save thousands of dollars each year.  These dollars will be better invested in you, and your fellow credit union members in the form of lower fees, better interest rates, and new services.

Q: What is the difference between a State and a Federal charter?
A: A Federal charter means the credit union is regulated by the National Credit Union Administration (NCUA). A State charter means the credit union is regulated by the State’s division of financial services.  Since we are already a federally insured credit union, we are already regulated by the NCUA.

Q: How will this affect me?
A: Nothing for you will change! The conversion will not change the credit union’s name, so you will not need new checks, debit or credit cards. And of course, you will continue to enjoy full $250,000 protection of your accounts through the National Credit Union Administration (NCUA).

 

Q: Will we be less safe if only one regulator reviews us?
A: No. In fact, the federal and state reviews are nearly identical.  What needs to be reviewed in terms of safety and soundness will be reviewed.

Q: Will the switch from a state charter to a federal charter mean more federal government control?

A: No, since we are already federally insured by the NCUA, we are subject to federal credit union regulations and oversight.  Becoming a federally chartered credit union will not grow this current set of rules and regulations – or trigger a new set of rules and regulations.


Q: Are you doing this in preparation for a buyout or merger?
A: No. We are extremely well-positioned and strong, with no intention to merge.

Q: Does this impact my federal insurance coverage?
A: No, not at all. Credit Union of Colorado is and will continue to be federally insured by the National Credit Union Administration, meaning you have up to $250,000 in protection for an individual account. The NCUA provides separate insurance coverage for deposits held in different ownership categories such as individual accounts, joint tenancy accounts, Individual Retirement Accounts (IRAs) and trust accounts.

Basic NCUA Deposit Insurance Coverage Limits*
Individual Accounts (owned by one person)                 $250,000 per owner*
Joint Tenancy Accounts (two or more persons)            $250,000 per co-owner
Trust Accounts (Revocable or Payable on Death)        $250,000 per beneficiary 
subject to specific limitations and requirements**
IRAS and certain retirement accounts                          $250,000 per owner

*These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each NCUA-insured credit union.  The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all NCUA requirements are met.

Q: Will we be less safe if only one regulator reviews us?
A: No. In fact, the federal and state reviews are nearly identical.  What needs to be reviewed in terms of safety and soundness will be reviewed.

Q: What if I still have questions?
A: Feel free to contact your local branch manager or the management team of the Credit Union by calling 303-832-4816 or 1-800-444-4816.

 

Equal Housing Lender


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This credit union is federally insured by the National Credit Union Administration.

This credit union is an Equal Housing Lender, we make loans without regard to race, color, religion, national origin, sex, handicap, or familial status.