November 4, 1998
Bruce A. Hauck, President & CEO
Carmel Credit Union
90 Spruce Street
P.O. Box 505724
Chelsea, MA 02150
You have asked whether §202 of the Credit Union Membership
Access Act, enacted on August 7, 1998, applies to a federally
insured credit union converting to a state chartered cooperative
bank that is a mutual. Pub. L. No. 105-21. As explained below,
the answer is yes.
Section 202 applies to an insured credit union converting to "a
mutual savings bank or savings association (if the savings association
is in mutual form), as those terms are defined in §3 of the
Federal Deposit Insurance Act." 12 U.S.C. §1785(b)(2)(A).
Included in the §3 definition of savings associations are
state chartered cooperative banks. 12 U.S.C. §1813(b)(3)(B).
Therefore, because the cooperative bank falls within the definition
of a savings association and it is in mutual form, §202 of
the Credit Union Membership Act applies.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/MFR:bhs
SSIC 3000
98-1040
cc: Region I