Hudson Valley FCU will be seeking approval from members to convert the credit union to a state charter.
The credit union was originally chartered in 1963 to serve IBM Poughkeepsie employees, and currently serves all of Dutchess, Ulster, Orange and Putnam counties. With a change to a New York state charter, the credit union is seeking to serve those who live, work, worship, attend school, or volunteer in its current four counties, as well as Westchester, Rockland, Columbia, Greene, Albany, Rensselaer, Schenectady and Saratoga counties.
Members will receive ballots to vote on the conversion proposal. If approved by members, the institution will change its name to Hudson Valley Credit Union. Additional details are available on the credit union’s website.
“We are taking this step to ensure the ability to grow and serve our members adequately and securely,” said President/CEO Mary Madden. “Becoming a New York state chartered credit union provides a unique opportunity for the credit union to prudently expand its membership and grow deposits and loans, while building upon the foundation of trust our members have always had in us.”
Notably, in their announcement to members, HVFCU explained that the credit union will have a greater voice at the state level “to advocate and influence regulations that will affect our members and their money.”
The New York Credit Union Association has long advocated for improvements and enhancements to the state credit union charter. In recent years, the Association has seen several key improvements to the state charter implemented by working closely with the Legislature, the state Department of Financial Services and Gov. Andrew Cuomo’s administration.
The Association has successfully worked with stakeholders in state government to:
- pass a law that allows state-chartered credit unions to mix and match fields of membership;
- improve the process for obtaining low-income designations;
- ease restrictions on school banking programs;
- lower the minimum interest rate to be paid by state-chartered financial institutions on escrow accounts in connection with loans secured by mortgages on one-to-six family residences; and
- issue guidance that encourages state-chartered financial institutions to establish banking relationships with properly run marijuana and hemp businesses.
“I am pleased to see yet another New York credit union moving forward after seriously examining and considering the benefits of the state charter,” said Association President/CEO William J. Mellin. “The Association will continue our ongoing efforts to ensure the New York credit union charter is a viable and competitive alternative to the federal charter.”
Last August, Northern Credit Union in Watertown announced their conversion from a federal charter to a state charter.