The National Association of Federal Credit Unions announced Aug. 9 that its board of directors unanimously voted to amend its Articles of Incorporation to give state-chartered credit unions that are federally insured full membership rights.
The proposed change is now in the hands of the NAFCU membership, which has until Sept. 9 to vote on the issue. If approved, state-chartered NAFCU members would have full voting rights and would be eligible to vote on all NAFCU matters, including elections. State-chartered members also would be allowed to run for and serve on the NAFCU board of directors.
“This announcement is a natural evolution of NAFCU’s mission and supports our goal to help all federally insured credit unions with federal issues by becoming a stronger, more impactful organization,” Richard L. Harris, chairman of the NAFCU board of directors, said in a news release.
The NAFCU represents federal credit unions nationwide before key policymakers and regulators in Washington, including Congress, the National Credit Union Administration and the Consumer Financial Protection Bureau. According to the release, NAFCU has long recognized that its “advocacy efforts at the federal level have an impact on all credit unions, both federal and state-chartered.”
The NAFCU opened its membership to federally insured, state-chartered credit unions in June of last year. These credit unions are currently eligible to be associate members, but cannot vote or serve of the NAFCU board.
“If our membership votes in favor of the board’s unanimous recommendation, NAFCU-member credit unions would benefit from an even stronger and more influential partner in Washington, D.C.,” NAFCU President and CEO Dan Berger said in the release. “This change would strengthen the voice of all NAFCU-member credit unions and our industry at the federal level.”
For the amendment to pass, 25% of all voting members must vote, and two-thirds must vote to support the change, according to the release. NAFCU officials say the proposed amendment would not alter NAFCU’s focus, which would remain on federal issues affecting the nation’s federally insured credit unions.
“As NAFCU continues to grow, state-chartered members should have an equal vote and seat at the table, for the benefit of our membership and the industry,” Harris said in the release. “One member — one vote.”
To learn more about the proposed membership change, see https://www.nafcu.org/News/2016_News/August/NAFCU_Board_opens_member_vote_on_Articles_of_Incorporation/.