Pub. 5 2010-2011

September/October 2010 25 Extraordinary Service for Extraordinary Members. Reach Keith Leggett by e-mail at kleggett@aba.com. Read Leggett’s blog at http://creditunionwatch.blogspot.com . voluntarily surrenders its tax exemption. On the other hand, if a credit union is content with the limitations of its charter, its tax-exempt status would be preserved. Pay to play is a win for traditional credit unions, be- cause they keep their tax exemption. It is a win for credit unions that want greater authority, because it creates a pathway to engage in those powers. I would be interested in hearing what credit union leaders think. Z T HERE ARE SOME CREDIT UNIONS SEEKING POWERS that go beyond the current charter for credit unions. These institutions want to do more busi- ness lending, have access to alternative capital, and engage in other activities that are currently not permis- sible or limited by the credit union charter. However, these expanded powers move a credit union further away from its original purpose and the rationale for the tax subsidy. If a credit union wants greater ability to make busi- ness loans—in other words, exceed the aggregatemember business loan cap of 12.25 percent—or the ability to raise alternative capital, the trade-off is that a credit union credit union watch: keeping an eye on the credit union scene Should Credit Unions Pay to Play? Keith Leggett, Senior Economist, American Bankers Association Is it time to reconsider the tax exemption for credit unions that want to act like banks? how it works. This brochure has been delivered to every NBA-member CEO and president, as well as to the NBA Board of Directors andmembers of the NBA BankPAC Com- mittee. An NBA BankPAC promotional DVD was included with the brochure. I encourage you to use these tools to engage all of your bank officers, directors, and employees in the government relations process. The DVD can be reviewed at your bank’s board, manager, and employee meetings. If each bank employee were to contribute $10 to BankPAC, we would raise more than $130,000, well over our BankPAC goal of $110,000. Please consider running an internal BankPAC campaign at your financial institution. When we all work together, we can make a difference! It will take every one of us doing our part to reach our goal of 100 percent participation in NBA BankPAC this year. If you would like more information regarding NBA BankPAC, please contact me or Jennifer Heaton, vice president of government relations, at (402) 474-1555 or jennifer.heaton@nebankers.org. Z Q BankPAC Counts! ReachGeorge Beattie at (402) 474-1555 or george.beattie@nebankers.org .