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Board changes sought at UI credit union

Dave DeWitte and George C. Ford

The Gazette

March 2, 2007

[Note: This material is copyright by The Gazette, and is reproduced here as a matter of "fair use" for non-commercial, educational purposes only. Any other use may require the prior approval of The Gazette.]


  IOWA CITY — A group of University of Iowa Community Credit Union members who led successful efforts to defeat a change of the credit union’s name plan to present their own independent slate of candidates at the credit union’s March 21 annual meeting to oppose the directors who supported the change. The change of name to Optiva Credit Union that was scheduled to take place Thursday was canceled after members voted 806-631 Wednesday night to overturn a narrowly passed Oct. 4 vote in favor of the name change.

  A group of credit union members petitioned for a new election, complaining of irregularities in the previous vote, and asked state regulators to oversee it.

  ‘‘We are very thankful for the overwhelming positive response from our members,’’ said Tim Taffe, one of the leaders of Sink Optiva. ‘‘Our hope is for continued financial growth and much better and more open managerial communication with the members.’’

  Taffe said the group’s focus has shifted to the credit union’s March 21 annual member meeting, where it plans to present an independent member slate for the board election to oppose the management slate running for re-election.

  ‘‘The incumbents, including 25-year chairman Eldean Borg, have been associated with the failed and expensive Optiva conversion plan,’’ Taffe said.

  Jeff Disterhoft, president of the University of Iowa Community Credit Union, attributed Wednesday’s vote to a rejection of the Optiva name.

  ‘‘In the end, I think people were just not comfortable with the name itself,’’ Disterhoft said. ‘‘So we will continue for now as the University of Iowa Community Credit Union.’’

  Disterhoft said about $400,000 was spent on preparations for the name change. He said about half of that total would have been spent on stationery and brochures, regardless of any plans to change the credit union’s name.

  ‘‘On Oct. 4, when the members voted to change the name of the credit union effective March 1, there was no choice but to move forward and spend these funds,’’ Disterhoft said. ‘‘Once the membership gave us the directive, we were instructed to prepare for the change. We really had no other option.’’

  Two employees of Iowa’s credit union supervisory branch were on hand Wednesday to observe the election. Ballots are being held by the state in case a recount is requested.