NORTH LIBERTY, Iowa–The management and board of University of Iowa Community Credit Union met over the weekend to further discuss how to respond to a new policy that prohibits university trademarks from becoming part of unassociated group names.
The new policy comes one week after Gov. Kim Reynolds signed a bill that bars credit unions from using public university names in their titles.
While the policy is broad, it has been driven by several members of the Iowa Board of Regents who have expressed specific concerns regarding University of Iowa Community Credit Union and the misconception by some that it is affiliated with the university. As CUToday.info earlier reported, Regent Larry McKibben, who has been the loudest voice among the Regents saying he is concerned over the credit union’s name, did not disclose he is also part-owner of Farmers Savings Bank in Marshalltown.
In addition to UICCU, the new policy also affects University of Northern Iowa Credit Union.
Board Meets
University of Iowa Community Credit Union President Jeff Disterhoft told The Gazette the credit union’s board was scheduled to meet Friday and Saturday to talk about whether to change the name or fight the new state law.
Disterhoft earlier spoke with CUToday.info regarding how the credit union has been put into a challenging position as the result of the new laws and policies. Disterhoft earlier said he had “mixed emotions” about the prospect of a name change, and noted that more than a decade ago members of UICCU rejected a name change to Optiva Credit Union.
Disterhoft has expressed indignation to the Gazette that the debate’s genesis is with McKibben, the Regent who is part owner of a bank. McKibben has said he did not need to disclose the connection as its unrelated to his regent role and “doesn’t fit” as a conflict, according to the Gazette.
Disterhoft told the Gazette he disagrees, and that McKibben’s advocacy for a board policy affecting credit unions makes his bank ownership a conflict.
The Gazette reported the new state law appears retroactive, requiring unions change their names. The Board of Regents rules are forward-thinking, preventing unaffiliated organizations from claiming connection by name in the future.