Sunmark Federal Credit Union to Defect from Federal Charter

Sunmark Federal Credit Union (latham, NY) has applied to federal and state regulators to convert from a federal to a state-chartered credit union and for an expansion in its geographic footprint.

According to the $678 million credit union, the National Credit Union Administration has already approved the conversion, but still needs the approval of the New York Department of Financial Services and the credit union's members.

The credit union stated that the New York state charter is more flexible than the federal charter.

Currently, Sunmark is limited to serving people who live, work, worship, attend school, volunteer, or regularly conduct business in Schenectady, Albany, Rensselaer, Saratoga, Montgomery and Schoharie Counties. As a state chartered credit union, Sunnmark will be able to add the counties of Columbia, Greene, Onondaga, Putnam, Rockland and Westchester.

In addition, the credit union will be able to serve persons that belongs to a business or association that has signed up with the Sunmark to make membership available to its employees or association members outside of New York State.

Members of Sunmark will vote on the proposed charter conversion on July 31.

This would be the second large federal credit union headquartered in New York to defect from the federal charter. Earlier this year, Hudson Valley Federal Credit Union voted to switch from a federal to a state charter.

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