Credit union representatives are asking the Legislature to make changes to the system for chartering the nonprofit banks. If they don't get it, the credit unions have threatened to launch an initiative drive and put the issue before voters in November.
On Wednesday afternoon, the two sides shuttled in and out of the House and Senate leaders' offices, holding separate meetings and putting their final offers on the table.
Howard Headlee, president of the Utah Bankers Association, said the banks made an offer to credit union officials, but it is limited to the traditional community credit unions, rather than the big credit unions that act more like banks.
"Our offer gives them everything they were seeking, plus some additional items," said Headlee. "We've made a very generous offer, but it is limited to the traditional credit unions that are operated within the spirit of the law."
Scott Simpson, president of the Utah League of Credit Unions, appeared unimpressed with the offer.
"We were hoping for a meaningful choice between [state and federal] charters and they're giving us a meaningless choice," he said.
Senate Majority Leader Curt Bramble, R-Provo, has had numerous meetings with both sides in recent weeks and says talks will continue.
"Senate leadership would like to find common ground between the banks and credit unions," Bramble said. "I think it's in the citizens' best interest to find common ground between these different types of financial institutions that both play a vital role in the state's economy."
Right now, credit unions can either be chartered by the state or federal regulators. What the credit unions are asking is for three concessions that would basically bring some of the terms of the state charter in line with the federal charter.
At the same time, the credit unions want to retain favorable provisions in the state charter that give them the ability to cross county lines when defining who can join.
Bramble said he is cautiously optimistic that a deal will be struck.
If it is not, the credit unions, with more than 1.2 million members scattered across the state, have a built-in grass-roots network that could be called into play to get the signatures required to put the issue on the ballot.
These concessions would basically bring some of the terms of the state charter in line with the federal charter:
* Increasing the amount a credit union can loan to its members from 1 percent to 10 percent of assets.
* Eliminating a requirement that borrowers be members of a credit union for six months before getting a business loan.
* Raising the business lending limit from $250,000 per member to 12.5 percent of the credit union's assets.
