Converting from a state to a federal charter

Occasionally NAFCU will receive questions from credit unions regarding converting from a state to a federal charter. If your state-chartered credit union ever makes this decision, I’ve included some helpful information below that may help you in your conversion.

This Charter Application Introduction from NCUA provides some great information and states the following:

“The Federal Credit Union Charter Application Guide provides helpful information and recommendations for organizing groups to navigate the process of applying for a new (also called a de novo) federal credit union charter.  As described in this document, organizers are encouraged to refer to the agency’s Chartering and Field of Membership Manual, Section 1753 of the Federal Credit Union Act, or Part 701 of NCUA regulations for information about specific requirements that need to be met in order for the agency to issue a federal charter.  Existing state-chartered credit unions that wish to convert to a federal charter should refer to Chapter 4, Charter Conversions, of the Chartering and Field of Membership Manual for the required application forms and procedures.” (Emphasis added).

It is important to note that Chapter 4 of Part 701 states that “federal credit unions receive their charters from NCUA and are subject to its supervision, examination, and regulation.” Additionally, it provides a helpful list of documents that must be submitted with the conversion proposal, including:

 

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