East Hartford’s American Eagle Federal Credit Union said it has applied for regulatory approvals to swap its federal charter for a state charter.
In addition, AEFCU has asked for permission to add New Haven County to its membership turf, which currently covers Hartford, Middlesex and Tolland counties.
The credit union’s deposits would continue to be insured by the National Credit Union Administration, but it would be overseen by state regulators. American Eagle hopes to complete the conversion by March of 2015.
The rules for state charters are different from federal charters. For example, the former allow for some exemptions from member business loan limits, according to the National Association of State Credit Union Supervisors.
AEFCU is the second Connecticut financial institution in the past two weeks to announce it will seek a state charter. Saving Institute Bank & Trust said it would seek a state charter because it was unhappy with rules in Dodd Frank that affect thrift banks.
