Warwick Credit Union is grinding towards a placement of a rare "mutual equity interest", once its constitution is amended to cater to this capital instrument.A mutual equity interest for a mutual deposit taking institution will be similar to the Basel 3 compliant hybrid capital instruments issued by banks.In an explanatory statement for members Warwick's board of directors said it was "proposing to issue a capital instrument, to ensure that it is adequately capitalised."In June last year members of the credit union agreed to a related measure to redeem $2.5 million of tier one preference shares issued in 2006. In its 2016 annual report, Warwick Credit Union said those "expensive instruments no longer qualified [while] capital repaying them provided an additional useful saving."It said then "we are continuing to work on a replacement capital issue to fund ongoing growth."This alternative mutual equity interest will be "the most subordinated claim for a return of capital in a winding up of Warwick," the board informed members.A special general meeting of Warwick Credit Union will be held on the 3rd August to consider the changes to rules. The guarded use by credit unions and mutual banks of mutual equity interests will be among topics considered Greg Hammond in his assessment of recommendations of the Senate Economic References Committee report on Cooperative, Mutual and Member-owned Firms.Hammond's report is due by the end of this week.