1. WHAT IS A CREDIT UNION?
A credit union is an association of people, united by a common
bond, who have incorporated under state or federal law in a mutual
endeavor to:
- Provide a safe and convenient means of encouraging thrift through systematic savings.
- Provide funds from which members may obtain low cost loans for provident and productive purposes.
- Provide members an opportunity for learning how to improve the management of their financial affairs through a cooperative and democratic organization.
2. WHO OWNS THE CREDIT UNION?
YOU, as a member, own the credit union.
3. WHO RUNS THE CREDIT UNION?
- Control of the affairs of a credit union is vested in a Board
of Directors, elected by and from the membership. An annual
membership meeting must be held each year. At this meeting
the officials report to the members, the election of new officers
is conducted, and other business affection the credit union
is acted upon.
- A Credit Union Committee consisting of three or more
members, also elected by the membership, is charged with
the responsibility of approving all loans made by the credit
union.
- A Supervisory-Audit Committee is responsible for the regular
examination of all the books and records of the credit union.
This is in addition to our annual Federal examination.
- The Board and the committee members receive no pay for
their service.
4. WHO IS ELIGIBLE TO BE A MEMBER?
The field of membership shall be limited to employees of the
Maumee Board of Education and members of their immediate
families and retirees.
5. HOW DOES A PERSON BECOME A MEMBER OF A CREDIT
UNION?
Contact the office or an officer. A member may be able to
direct you to the appropriate person. A membership card needs to
be filled out by the person applying , agreeing to participate in the
savings program of the credit union A minimum deposit of $5.00
(share) creates the account. A payroll deduction plan for your
convenience is provided by the Board of Education.
6. WHAT KINDS OF ACCOUNTS ARE THERE?
- Single Account— held by one member only
-
Joint Account— held jointly by the member and any other
person such as husband, wife, or dependent children. A joint
account requires signatures of both members on the membership
card. Either member may deposit and/or withdraw savings from
the account.
7. WHAT IS THE CRITERIA FOR APPLYING FOR A LOAN
THROUGH THE CREDIT UNION?
Only members can apply. If you are listed on a joint account
you are not an “official” member. If you are the second name on a
joint account you need to establish your own account in order to
qualify.
8. HOW DO I APPLY FOR PAYROLL DEDUCTION?
Payroll deduction cards may be obtained from the credit union
office or from credit union building reps.
9. HOW ARE DEDUCTIONS POSTED TO MY ACCOUNT?
Payroll deductions are deducted from every check, 26 pays,
and are posted the first of the following month.
If notification of a new sign-up or change in a present sign-up is
received by the last pay of the month, the deduction will take effect
the first pay of the next month. If you wish to stop payroll
deductions, send a signed note to the credit union office stating
such.
10. WHAT IS MEANT BY LOAN PROTECTION INSURANCE?
The credit union carries group insurance on the lives of
borrowers. If a credit union member passed there is up to
$10,000 available to apply to the balance of the existing loan.
Example #1: A loan balance of $8,000 would be paid in full.
Example #2: A $15,000 loan, the estate would be responsible
for $5000 of the loan. The credit union pays the premium.
11. WHAT SHOULD I KNOW ABOUT WITHDRAWALS?
Withdrawals may be made in person at any time the office is
open. A limit as to the amount to be withdrawn could depend
on whether your shares are pledged as collateral on a loan.
12. DO I HAVE TO CLOSE MY ACCOUNT WHEN I
RETIRE?
No. Retired members may keep their accounts open
indefinitely. They can deposit and withdraw savings and
borrow as they did before.
13. MUST I WITHDRAW MY SAVINGS WHEN I LEAVE THE
SYSTEM FOR REASONS OTHER THAN RETIREMENT?
No. Once a member, always a member with full
membership privileges.
14. ARE DIVIDENDS PAID ON SAVINGS?
Yes, dividends are compounded daily. The dividend is
determined by the Board of Directors and depends on the net
earnings.
15. WHAT IS THE MAXIMUM I MAY HAVE IN SHARES?
Unlimited.
16. ARE MY SAVINGS PROTECTED?
Yes. Each member’s share (savings) account is insured up
to $100,000 by the National Credit Union Administration, an
agency of the Federal government. This insurance gives
Members the same kind of protection that FDIC and
FSLIC provides customers of other financial institutions.
17. MAY I APPLY FOR MEMBERSHIP AND A LOAN
AT THE SAME TIME ?
Yes, however, there is a short waiting period for a first
time loan.
18. WHAT IS THE MAXIMUM AMOUNT I CAN
BORROW?
You may borrow up to 10% of the total shares in the
Credit Union at that time, but it depends on security
offered, ability to repay, and other credit factors.
19. WHAT KINDS OF LOANS DOES THE CREDIT
UNION APPROVE?
The credit union offers secured and unsecured loans.
Unsecured loans, such as signature loans usually have
higher interest rates. Secured loans—Example –auto,
bill consolidation, construction, dental and medical bills,
education expenses are usually at a lower rate of
interest.
20. WHAT SECURITY DOES THE CREDIT UNION
REQUIRE?
Requirements are evidence of ability to pay and
faithful intent. Every loan requires a witnessed
promissory note, signed by the borrower. Further
security such as shares, automobile, stocks, or comaker
signature's) may be required as determined by
the judgment of the credit committee or loan officer.
21. HOW ARE SIGNATURES WITNESSED?
The witness must personally see the borrower sign the
note before affixing his/ her own signature.
22. WHAT INTEREST RATE IS CHARGED?
Current rates are determined quarterly and are posted
on each building’s Credit Union bulletin board.
23. WHAT INTEREST RATE IS CHARGED?
Current rates are determined quarterly and are posted on each
building’s Credit Union bulletin board.
24. CAN I RE-APPLY FOR A LOAN BEFORE AN
EXISTING NOTE IS PAID OFF?
Yes, whenever the need exists, by filling out a new loan application.
25. WHAT HAPPENS TO MY LOAN IF I RETIRE OR LEAVE
THE SCHOOL SYSTEM?
Payroll deduction stops; therefore, it is your responsibility to
notify the credit union office and make arrangements to maintain
payments as contracted. Payments must be made each month to
the credit union.
26. CAN I MAKE ADDITIONAL PAYMENTS ON MY LOAN?
Yes, in any amount and at any time. You are charged interest
only the number of days between loan payments. You never pay
a penalty at your credit union when you pay your loan off early.
27. ARE CREDIT UNION RECORDS CONFIDENTIAL?
Yes, transactions are kept strictly confidential.
28. HOW ABOUT CHANGE OF NAME OR ADDRESS?
Notify your credit union office at once of name changes and address
changes; also make notification if you leave the system, go
on leave of absence, or are transferred.
29. WHAT IS THE LIFE SAVINGS INSURANCE PROGRAM?
This provides insurance based on the amount a member saves,
up to a maximum of $3000. This insurance automatically matches
the savings of the member with life insurance at no extra cost to
the member.
- Ages 55 to 59 - 75 cents for each $1
- 60 to 64 - 50 cents for each $1
- 65 to 69— 25 cents for each $1
A baby (if qualified ) would receive 25 cents insurance for
each $1 deposited until age of six months and dollar for dollar coverage
after that.
30. DO I LOSE PART OF MY INSURANCE WHEN I REACH
55?
No, as long as you leave your money in the credit union. For
example, if you deposit $500 by age 54 your family gets $500 insurance
(and your savings, if requirements are met) even if you
die at 100.
The credit union pays for the loan protection insurance and the
life savings insurance.
