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AGENDA ITEM 13 <br /> A RESOLUTION URGING ACTION REGARDING CREDIT UNION MEMBERSHIP <br /> WHEREAS on September 15, 1977, the State Employees Credit Union changed its <br /> bylaws to open membership to bona fide local government employees who were <br /> members of a retirement system set up and overseen by the State of North <br /> Carolina; and <br /> WHEREAS since that time many local government employees state-wide have <br /> joined the Credit Union, including ninety (90) of the approximately two <br /> hundred forty-nine (249) full time County employees; and <br /> WHEREAS these ninety (90) employees of Orange County have arranged for <br /> loans or savings by payroll deduction, which loans and savings programs <br /> would be seriously disrupted by their sudden explusion from the Credit <br /> Union; and <br /> WHEREAS the North Carolina Bankers Association and the North Carolina <br /> Savings and Loan League have combined to attack in court the practice <br /> of allowing all governmental employees to join the same credit union; <br /> and <br /> WHEREAS in a January, 1979 opinion (stayed pending appeal), Mudge Braswell <br /> determined that as a matter of law under the current statutory provisions <br /> state and local governmental employees do not have a sufficient "common bond" <br /> to be permitted to join the same credit union; and <br /> WHEREAS the Bankers Association and Savings and Loan League are believed to <br /> be preparing legislation which would clearly debar local governmental employee! <br /> from being members of the State Employees' Credit Union, whatever courts might <br /> ultimately decide about the existing statute; and <br /> WHEREAS this debarment would work a hardship on all present and future employees <br /> of Orange County, forbidding them to take advantage of the economies of scale <br /> offered by the larger organization; and <br /> WHEREAS the effect on the ninety (90) employees already involved in payroll <br /> deductions to the Credit Union could be very severe, involving refinancing <br /> loans and withdrawing long-term savings; <br /> NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange County <br /> that the Board hereby urges the North Carolina Association of County Commissioners <br /> to add to its legislative package a bill changing the language of NC GS54-98 in <br /> such a manner as to clarify the common bond between state and local governmental <br /> employees so that state and local governmental employees may join the same credit <br /> union; and <br /> BE IT FURTHER RESOLVED that the Clerk of the Board of Commissioners send copies <br /> of this resolution to the North Carolina Association of County Commissioners <br /> and to the Legislative Delegation representing`Orange County. <br /> This the 20th day of February, 1979 <br />