State Charter Conversion - Rave Financial (2024)

A Federally chartered CU is one that is governed at the national level by The National Credit Union Association (NCUA for short). They make and administer the policies of operating a credit union. The NCUA is also the agency that insures our members’ deposits. This is the same concept as how the FDIC governs and insures banks.

With a State Charter, the credit union is governed by the state with assistance from the NCUA. State Chartered credit unions are still insured by the NCUA, but more of the decisions affecting the credit union are made by someone here in the great state of Texas. Additionally, the Credit Union Department of Texas provides resources and is an advocate for credit unions strictly here in the state. They want to see Texas-based credit unions grow and expand so we can reach more communities to help improve people’s financial health.

Our passion is to serve and improve the financial health of individuals and businesses in the communities we serve. We want everyone to have the chance to be financially healthy. We believe in the spirit of “people helping people” and opening up our charter to State, it will open up the doors for us to reach more communities and more people.

Yes, there will be no change to how your money is protected. Your deposits will still be federally insured based on current guidelines provided by the NCUA, up to $250,000.

We are not changing your account numbers, routing number, login usernames, or anything else tied to your account. Everything will remain the same.

It will not. State Charter does not impact our website other than letting more people know they can be a part of this great financial institution.

No. We love our members and want what is best for them because they're like family. Our culture is what helped us get to this point and is integral to how we continue to grow and serve our communities.

Our credit union has been safe and sound for the past 86 years, by converting our charter, it will continue to be. However, a state charter does allow us to work more closely with the State of Texas regulating body to find ways to improve and protect our members' best interests.

Initially, we will continue to focus on our existing markets, however, we will plan to move further west to accommodate those in the greater Houston Metro and beyond.

We are still a non-profit, financial institution, whose customers (members) are the owners. We do not answer to stockholders, our volunteer board represents our members and everything we do is for the overall betterment of our members.

No, this will not impact our volunteer’s status or the salary structure of our employees.

Absolutely! The state charter will have no impact on how you do business with us other than our ability to continue to offer new ways for you to bank with us more conveniently.

Yes. Members will have an opportunity to vote on May 5th at 2 pm at our Calder Branch, or you can pick up a ballot at any of our other branches beginning April 1st, 2022, and mail your vote to our independent auditor. Ballots must be received by the auditor, by the May 5th, 2 pm meeting deadline to be accepted.

A ballot was included in your March statement that was mailed at the beginning of April; however, you can also pick up a ballot at any branch. All ballots must be mailed to our independent auditor at Wathen, DeShong & Juncker, LLP, 4140 Gladys Ave, Suite 101, Beaumont, Texas 77706. Ballots must be received prior to the vote on May 5th at 2 pm.

If you have lost or misplaced your ballot, you can visit any of our branches to pick up a new ballot.

No, you may only vote once. Any additional ballots received will be destroyed and not count.

No, you do not have to vote, however, we encourage you to exercise your right as a member.

That will depend on the auditor and the number of ballots they receive but we hope to share the results with our membership as soon as we can.

State Charter Conversion - Rave Financial (2024)


How do I convert from a state chartered to a federally chartered credit union? ›

When a state charter applies to convert, the credit union must: File proof that it in compliance with state laws through the application process as well as the NCUA. Submit the required conversion application, proposed federal credit union organization certificate, and other documents with NCUA.

What happened to Mobil Oil Federal credit union? ›

The more we lift each other up, the further we all go. On October 2nd, Mobiloil Credit Union will officially switch names to Rave Financial. Changes in our signs, experience centers, products, online banking, and mobile app will take place over the next several months.

Why is MobilOil changing their name? ›

We believe our new name is more approachable and conveys that we are open to the broader community. Our new name and brand will reflect our history, legacy, and philosophy of providing raving fan service to our membership. All with a big dose of personality, authenticity and grit.”

What does it mean for a credit union to be federally chartered? ›

A federally charted credit union has a charter from the federal government granting it the ability to operate. Federally charted credit unions follow federal regulations, sometimes more strict than state regulations.

Why would a bank prefer to be state chartered instead of federally chartered? ›

State-chartered financial institutions have comparable powers to federal institutions in all areas of operation. In the case of legal lending limits, state-chartered banks have a greater authority for secured lending due to the broader definition of what constitutes a secured loan.

What does it mean for a bank to be state chartered? ›

National banks are chartered and regulated under federal laws and are supervised by a central agency. State banks are chartered and regulated under state laws and are supervised by a state agency.

Is Rave Financial still a credit union? ›

In 1959, the credit union changed its name to Mobiloil Federal Credit Union and again to Rave Financial in 2023. Rave Financial is now a community charter and currently has more than 75,000 members and assets exceeding $1 Billion. We are Rave Financial, banking worth raving about.

Which credit unions have failed? ›

Conservatorships and Liquidations
YearDateCredit Union Name
202209/30/2022Paducah Teachers Federal Credit Union
202203/04/2022Empire Financial Federal Credit Union
202201/03/2022Pomona Postal Federal Credit Union
202112/30/2021Portsmouth Schools Federal Credit Union
41 more rows

Are federal credit unions safe from collapse? ›

Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union. Beyond that amount, the bank or credit union takes an uninsured risk.

Who is the sister company of Mobil? ›

Over the past 140 years ExxonMobil has evolved from a regional marketer of kerosene in the U.S. to one of the largest publicly traded petroleum and petrochemical enterprises in the world. Today we operate in most of the world's countries and are best-known by our familiar brand names: Exxon, Esso and Mobil.

What country owns Mobil? ›

Mobil is a petroleum brand owned and operated by American oil and gas corporation ExxonMobil. The brand was formerly owned and operated by an oil and gas corporation of the same name (Mobil Oil Corporation), which itself merged with Exxon to form ExxonMobil in 1999.

What was Mobil oil before? ›

Mobil Oil's origins date to the 19th century. One predecessor, Vacuum Oil Company, was founded in 1866 and, after 1882, became part of the Standard Oil Company and Trust. Another predecessor was Standard Oil Company of New York (Socony), established by the trust in 1882.

Are credit unions run to make a profit? ›

A credit union is a not-for-profit financial institution that accepts deposits, make loans, and provides a wide array of other financial services and products.

Are credit unions safer than banks during a recession? ›

bank in a recession, the credit union is likely to fare a little better. Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money.

What are the best credit unions to join? ›

Choosing the best credit union: Where to begin
Brand nameBest forAPY*
AlliantOverallUp to 3.10%
PenFedRewards credit cardUp to 3%
First Tech Federal Credit UnionLow-interest credit cardUp to 5%
Consumers Credit UnionDeposit account varietyUp to 3%
4 more rows
May 22, 2024

Can state chartered banks join the Federal Reserve? ›

Any qualified state-chartered bank may become a member of the Federal Reserve System. The 12 regional Reserve Banks supervise state member banks as part of the Federal Reserve System's mandate to ensure strength and stability in America's banking system.

What is the difference between a state chartered credit union and a federal credit union? ›

The main difference is whether the permit to do business as a credit union was granted by the state government or the federal government. Whenever a new credit union is established, the organizers apply for either a state or national (federal) credit union charter.

Does NCUA regulate state chartered credit unions? ›

An applicant seeking to charter a state-chartered credit union will need to submit its charter application to the State Supervisory Authority (SSA). If an applicant also seeks to have the state-chartered credit union federally insured by the NCUA, it will need to submit an insurance application to the NCUA.

Do state chartered banks automatically become members of the Federal Reserve System? ›

The Central Bank

Membership in the Federal Reserve System is required for national banks and is optional for state banks. While many large state banks have become Fed members, most state banks have chosen not to join.


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