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ICBA Applauds Settlement in Texas Credit Union Case

Washington, D.C. (August 31, 2005)- The Independent Community Bankers of America (ICBA) applauded today the settlement of the lawsuit brought against the National Credit Union Administration (NCUA) by Community Credit Union (CCU) and OmniAmerican Credit Union about their right to convert to mutual savings institutions.

"ICBA is pleased to have joined with America's Community Bankers and 33 state trade associations in filing an amicus brief in support of CCU and OmniAmerican Credit Union to help further a successful outcome in this case," said Camden R. Fine, president and CEO of ICBA. "ICBA has always supported the right of a financial institution to choose the charter that will best serve its customers and community. NCUA should not be allowed to use intimidation and throw up roadblocks to stop a credit union from converting its charter. Hopefully, this case will help bolster the legislation introduced by Reps. McHenry and Towns that addresses these issues."

Rep. Patrick McHenry (R-NC) and Rep. Edolphus Towns (D-NY) have introduced The Credit Union Charter Choice Act of 2005 (H.R. 3206) which will prohibit the NCUA from using inappropriate regulatory measures to prevent credit union members from exercising their choice to convert their charters.