Minnesota group earns first-ever provisional charter from NCUA

Tribe is the first federal credit union to receive a charter under the NCUA’s provisional charter pilot initiative.

Historically, groups interested in organizing new credit unions had to find a way to raise the capital required to implement their business plans before they could obtain a charter.

But, in many cases, investors that provide the capital have been hesitant to make a firm commitment until an organization had an approved credit union charter in hand.

So the NCUA last year rolled out the provisional charter – an option in situations where the charter is the last piece a group needs to finalize its capital requirements.

 

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