Beehive C.U. Members to Decide on Bank Conversion

None by Eric Ray

(KCPW News) Members of Beehive Credit Union will begin receiving ballots this week as the institution's board of directors wants to convert to a member-owned federal mutual savings bank.

Scott Jorgensen, President and CEO of Beehive Credit Union, says the rising costs of new services and restrictions placed on credit unions make the change necessary. He says branch restrictions, the inability to accept all people as members and some lending restrictions are barriers to creating revenue.

Lori Christian, a Beehive Credit Union member opposed to the conversion, says there are nearly 1.5 million prospective members in Beehive's chartered area of service. Rather than convert to a federal mutual savings bank, Christian says Beehive needs to work harder to reach those people. In addition, critics worry a conversion would severely limit the voting power of its members because banks base voting privileges on the amount of money on deposit.

Beehive Credit Union is asking members to vote on the conversion, and ballots began going out today. The votes are due on February 13th and can be returned via mail or in special drop boxes at Beehive Credit Union locations.

To hear directly from those involved, listen to today's Midday Metro here.

Click here to link to Beehive Credit Union.

Click here to link to www.protectbeehive.com

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW