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Federal to State Chartered Credit Union Conversion

State Charter Conversion FAQs



San Luis Obispo, California


Issued on November 15, 2023

Update: December 4, 2023

Voting Period Extended to January 4, 2024

Please see a special message from Tom Lebens, SESLOC Chairman of the Board, and Geri LaChance, SESLOC President & CEO. This announcement provides information on the voting period extension and more information on the reasoning behind our recommendation to convert from a federal to a state-chartered credit union.

Update: November 15, 2023

Charter Conversion Announced

For continued growth and expansion of products and services, SESLOC Board of Directors and Management are embarking on a plan to convert from a federal charter to a state charter.  This will better allow the credit union to grow and serve more members in a broader community than the two counties we currently have available in our federal charter. SESLOC members have a voice in this decision, and a vote of the membership is currently in progress. See below for some frequently asked questions.

Member Vote FAQs

When is the voting period?

The voting period is November 15, 2023 through January 4, 2024.

How may I ask questions during the voting period?

You may contact us at (805) 543-1816 or visit any branch during regular business hours. We will also hold a special town hall where you can ask SESLOC Board of Directors and Senior Leadership questions:

SESLOC Headquarters
3855 Broad Street
San Luis Obispo, CA 93403

On December 19, 2023
At 4:00 p.m. to 5:00 p.m. PST

How do I vote?

Members may vote one of three ways:

1. For your convenience, SESLOC members who are eligible to vote were sent a ballot via U.S. Postal mail to the primary member’s mailing address of record on November 15, 2023. Members may return the ballot via instructions in the letter. Ballots must be received prior to the Meeting of Members, listed below.

2. Members may vote in person during the Meeting of Members To Convert From a Federal to State Chartered Credit Union: 

SESLOC Headquarters
3855 Broad Street
San Luis Obispo, CA 93403

On January 4, 2024
At 4:00 p.m. to 5:00 p.m. PST


3. Members may vote in person during the Town Hall: 

SESLOC Headquarters
3855 Broad Street
San Luis Obispo, CA 93403

On December 19, 2023
At 4:00 p.m. to 5:00 p.m. PST


4. Members may also vote at any SESLOC branch by Wednesday, January 3, 2024 at close of business.

Do I have to vote?

No, you do not have to vote. However, we encourage you to exercise your right as a member. Being a member of a credit union has many advantages, and one is that you are an equal owner of our credit union.

How is the vote administered?

The federal to state chartered credit union conversion vote is administered by CU Ballot, an industry leader in conducting independent voting services for Credit Unions that are safe and sound.

CU Ballot will ensure the integrity of the vote, whereas each eligible primary member has a vote.

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.

View the special message —-> 

When will the results be announced?

We will notify members of the results after the voting period ends and the administrator has successfully tabulated the ballots. The results will be announced in early January via email, in Online Banking and on sesloc.org.

When will the change go in effect?

If the results are in favor of the conversion, we anticipate the conversion to be in March of 2024.

Charter Conversion Approval FAQs

If SESLOC members vote in favor of the federal to state charter conversion, here are common questions that may arise:

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?

No. The SESLOC Board of Directors and the Management team will continue to fulfill their respective duties in serving members.

Will there be any changes to member services?

SESLOC will continue to offer the same great products and services from the same branch locations and through our Contact Center.

Will there be any change in rates and fees?

No, deposit and loan rates and the current fee schedule will not be impacted by the charter change.

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. 

Have any questions?

If you have questions regarding the charter conversion, contact us at (805) 543-1816.