State Charter Conversion FAQs
SESLOC Members Vote to Approve the Federal to State Charter Conversion
Effective March 29, 2024
The SESLOC Board of Directors and Management team are pleased to announce that SESLOC members voted to approve the conversion from a federal to a state-chartered credit union. We appreciate our member participation in this special election.
As a reminder, all SESLOC deposit accounts will continue to be federally insured by our current federal government agency, the National Credit Union Administration’s Share Insurance Fund.
No action is required from you. You may continue using your same SESLOC Visa debit and/or credit cards and checks as you do today, and your day-to-day interactions with SESLOC remain
the same.
Charter Conversion Approval FAQs
Will my SESLOC accounts still be federally insured?
Yes. All SESLOC deposit accounts will continue to be federally insured by our current federal government agency, the National Credit Union Administration’s Share Insurance Fund.
Will there be any changes to my accounts, direct deposits, or to the services I use?
It will be business as usual for members. Account numbers and passwords will not change, and our existing branches, Contact Center, and business hours will remain the same.
Will new debit and credit cards be issued with the new credit union name? What about checks?
You will continue to use your current debit and credit cards. As cards expire, new cards will be issued with the new name. Members will also continue to use their existing SESLOC checks until they need a reorder.
Will the website address, phone numbers, mailing address or email addresses change?
No. The website, phone numbers, mailing addresses and email addresses will not change.
Will the credit union’s name change?
Yes. The word “Federal” will be removed from the name and we will be known as SESLOC Credit Union. This is the most significant change and will require a transition of our name and logo over a six-month period, although you would see many instances changed immediately.
Will there be any changes to the Board of Directors or Management team?
Will there be any changes to member services?
Will there be any change in rates and fees?
Is this anything like a conversion to a bank?
No. SESLOC has always been and will continue to be a credit union and provide its members with all the credit union advantages of fair-priced financial products and services. SESLOC remains committed to the cooperative principles upon which we were founded in 1942. We are extremely well-positioned and strong financially, with no intention convert to a bank.
Will my voting rights as a member change with the new charter?
No. Each member’s voting rights will remain the same in accordance with your SESLOC Member Agreement and Account Disclosure.
General FAQs
What is the difference between a state and federal chartered credit union?
A federal charter means the credit union is regulated by the National Credit Union Administration (NCUA). A state charter means the credit union is regulated by the California State Department of Financial Protection and Innovation, which regulates all California state-chartered credit unions and other financial institutions for compliance with the laws and regulations of the state of California, as well as appropriate rules and regulations of federal agencies.
What are the advantages of converting from a federally chartered to a state chartered credit union?
By converting to a state charter, it will allow SESLOC to diversify our field of membership by allowing new members to join from additional counties in central California. These are counties that would not be permissible under current NCUA policies with a federal charter. Growth from this conversion will enhance our ability to keep our dividend and loan rates competitive in the marketplace and allow continued investment in new products and services, including enhanced electronic services.
Why is SESLOC recommending to convert from a federal to state charter?
There are several reasons SESLOC is recommending to convert from a federal to state-chartered credit union. On December 4, 2024, Tom Lebens, SESLOC Chairman of the Board and Geri LaChance, SESLOC President & CEO issued a special message with more details for the recommendation. We advise you to read this special message in full.
Have any questions?
If you have questions regarding the charter conversion, contact us at (805) 543-1816.
Savings are insured to at least $250,000 and backed by the full faith and credit of the U.S. government. National Credit Union Administration, a U.S. government agency.
