Only one other state-chartered credit union — Utah Central Credit Union — is in a similar situation, said Orla Beth Peck, the department's supervisor of credit unions.

"The process is ... not without its pitfalls," Leary said, noting disputes erupting over similar applications filed in other states. "There have been a few over the past 18 months where it has not been easy."

For example, Lafayette Federal Credit Union in Kensington, Md., announced in January it had abandoned its attempts to convert to a federal mutual savings bank. Lafayette's conversion attempt was marred by miscounted member ballots, public protests and a petition drive to remove the credit union's entire board of directors.

DFCU Financial in Dearborn, Mich., abandoned its application after members voiced similar opposition to its conversion.

Scott Simpson, president of the Utah League of Credit Unions, said that "there's no question that the state charter in Utah has been savaged by the Legislature. But if I were a member of the credit union my question would be, 'Will I be better off, and am I properly educated about this decision? How is it really going to affect me?'

"At the end of the day, it'll be hard to justify this as better for the member. It may very well be, but I think it's a pretty high bar to go over."

Jorgensen maintains Beehive's focus is on what will benefit its members.

"We don't have a problem with other credit unions. We're not turning our backs on anybody," Jorgensen said. "We're just trying to get regulatory relief for our members.

"We believe that there's many credit unions that shouldn't even consider this. And we believe in what credit unions do. But in order for us to survive and thrive long-term, this is absolutely what we need to do for our members. ... To us, it's really an issue for our members (to decide), and our members only. They're capable of becoming informed and making a decision."

Beehive Credit union has 20,000 members and has been chartered in Utah since 1954. It has about $177 million in total assets.

The Utah Department of Financial Institutions reports that the state has 61 state-chartered credit unions and no mutual savings banks.

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