CREDIT
UNION
CREDIT
CREDIT FINANCE
CREDIT UNION
WORLD COUNCIL OF CREDIT UNION
NOT FOR PROFIT STATUS
10 STEP TO START
HOW TO START
CREDIT UNION LINKS
CREDIT UNION RESOURCES
FINANCE RESOURCES
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SECTION 1
CREDIT
Credit (finance),
the granting of a loan and the creation
of debt. It is any form of deferred
payment.
Credit rating,
assessment of credit worthiness
Credit score,
a representation of credit worthiness
Zombie credit,
a credit given to a (later) highly
leveraged company left to operate in
default by lenders
CREDIT
http://en.wikipedia.org/wiki/Credit
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SECTION 2
CREDIT
FINANCE
Credit is the provision of resources (such as
granting a loan) by one party to another party
where that second party does not reimburse the
first party immediately, thereby generating a
debt, and instead arranges either to repay or
return those resources (or material(s) of
equal value) at a later date. It is any form
of deferred payment.
The first party is called a creditor, also
known as a lender, while the second party is
called a debtor, also known as a borrower.
CREDIT FINANCE
http://en.wikipedia.org/wiki/Credit_(finance)
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SECTION 3
CREDIT
UNION
A credit union is a cooperative financial
institution that is owned and controlled
by its members and operated for the
purpose of promoting thrift, providing
credit at reasonable rates, and providing
other financial services to its members.
Many credit unions exist to further
community development or sustainable
international development on a local
level. Worldwide, credit union systems
vary significantly in terms of total
system assets and average institution
asset size, ranging from volunteer
operations with a handful of members
to institutions with several billion
dollars in assets and hundreds of
thousands of members. Yet credit
unions are typically smaller than
banks.
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SECTION 4
THE
WORLD
COUNCIL
OF
CREDIT
UNION
WOCCU
The World Council of Credit Unions (WOCCU)
defines credit unions as "not-for-profit
cooperative institutions".
In practice however, legal arrangements
vary by jurisdiction.
This difference in viewpoints reflects
credit unions' unusual organizational
structure, which attempts to solve the
principal-agent problem by ensuring
that the owners and the users of the
institution are the same people.
In any case, credit unions generally
cannot accept donations and must be
able to prosper in a competitive
market economy.
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SECTION 5
NOT
FOR
PROFIT
STATUS
Not-for-profit status,
the need for a surplus.
In the credit union context, "not-for-profit"
should not be confused with "non-profit"
charities or similar organizations.
Credit unions are "not-for-profit" because
they operate to serve their members rather
than to maximize profits.
But unlike non-profit organizations, credit
unions do not rely on donations, and are
financial institutions that must turn what
is, in economic terms, a small profit
(i.e. "surplus") to be able to continue to
serve their members.
According to WOCCU, a credit union's revenues
(from loans and investments) need to exceed
its operating expenses and dividends (interest
paid on deposits) in order to maintain capital
and solvency.
CREDIT UNION
http://en.wikipedia.org/wiki/Credit_union
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SECTION 6
10
STEPS
TO
START
A
CREDIT
UNION
1. Find something
in common.
Credit union members are a collective group
having a common bond:
Occupation
Employees of the same company.
Association
Members of a professional and trade association,
fraternal order, labor or church group.
Community
Residents of the same well-defined neighborhood,
community or rural district.
Income
Low-income members can contact the National
Federation of Community Development Credit
Unions.
2. Get together.
As a rule, a "yes" vote by 500 potential
members warrants continuation of the process
to form a credit union.
The National Credit Union Administration
requires that a credit union with fewer
than 3,000 potential members provide more
evidence of support, since only about
one-third of potential members will join
and credit unions with less than 3,000
members may not be economically justified.
Survey your potential members to determine
whether they have an interest in supporting
a credit union.
3. Do the paperwork.
You should order the Interpretive Ruling
and Policy Statement 98-03, which redrafts
the NCUA's Chartering and Field of
Membership Manual.
The NCUA also has material on how to start
a credit union. You may obtain this document
from the NCUA's Web site.
4. Meet the membership
requirement.
If you want to discuss your potential field
of membership, you should contact state or
federal regulators.
You must ensure that your survey covers a
defined membership group and meets the
definitions as required by state and
federal regulations. It is suggested that
you get your proposed in writing.
5. Find a financial expert.
A CPA or a person with a strong financial
background needs to be on your organizing
committee.
This person will be responsible for
developing realistic pro forma financial
statements based upon your survey responses
and the degree of sponsor assistance you
will receive.
6. Form a committee.
Your organizing committee should be comprised
of individuals with very good credit. Both the
state and federal regulators will obtain a
current credit bureau report on each organizer
and will take a dim view of a bad credit bureau
report.
Furthermore, the state will not allow someone
who has had a bankruptcy within the past seven
years to participate on the organizing committee
or in the future operation of the credit union.
7. Set up a board
of directors.
The board is responsible for the general direction
of the entire credit union, and its members should
be able to understand the general and social
environment in which it operates.
8. Collect some money.
To help the credit union offset the cost of
enrollment forms, a membership fee (typically $5)
is charged. Additionally, each member is required
to purchase at least one share (usually at a cost
of $5 to $25) to help provide a base from which
loans can be made.
9. Get by with a little
help from your
friends.
It is recommended you obtain assistance from a
credit union consultant in your area. This
service is provided free of charge and, by
utilizing this service, it will make the
chartering process simpler and less
time-consuming, since the consultant will be
familiar with the necessary paperwork that
must be completed.
10. Apply for status.
Petition your state's Comptroller's Office
or the National Credit Union Administration
for official status.
Source:
Florida Credit Union League
Credit Unions:
Ten steps to starting your own credit union
http://www.bankrate.com/brm/news/cu/20000301a.asp
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SECTION 7
HOW
TO
START
A
CREDIT
UNION
1. Request official paperwork
from appropriate agency.
You can speak with someone at your state
comptroller's office or the National Credit
Union Administration(NCUA).
The state comptroller licenses credit unions
chartered by the state. The NCUA grants
licenses to federally chartered credit
unions.
2. Determine your common
field of interest.
The members of a credit union must all have
something in common. It could be living in
the same area, working at the same or going
to the same church.
3.Recruit members to meet
membership requirements.
Once you have established a field of membership
with a common bond now its time to recruit
members.
In most states you will need at least 300
members to justify a charter. Some states
require you to have a minimum of 2000 people
in order to get a charter.
4. Form your board of
directors.
You will need a governing body that is
responsible for the general supervision
and operation of the credit union.
The board of directors should be comprised
of individuals with a history of success
in and good credit.
5. Determine the membership
fee.
Collect the membership fee from all members.
The membership fee may range from $1 to $25.
6. Complete all paperwork
and apply for membership.
Once all forms have been filled out and
completed, submit them to the state
comptroller or NCUA.
How to Start A Credit Union.
http://www.ehow.com/how_5878707_start-credit-union.html
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SECTION 8
CREDIT
UNION
LINKS
About Credit Unions FAQs
http://www.sccfcu.org/asp/faq_3.asp?ph=hold
Association of Asian Confederations of Credit Unions
http://www.aaccu.coop
Association of British Credit Unions Limited
http://www.abcul.org
ACE Credit Union Services
http://acecus.org/
Business
http://www.ehow.com/business/
CDC Federal Credit Union
http://www.cdcfcu.com
Credit Union 1
http://www.creditunion1.org/
Credit Union Database
http://www.credituniondb.com/
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Credit Unions For You
http://www.creditunionsforyou.com/
Credit Union Locator
http://www.creditunion.coop/cu_locator/quickfind.php
Credit Union National Association
http://www.cuna.org/
Credit Unions Online
http://www.creditunionsonline.com
CU National Finder
http://www.findacreditunion.com/
How to Start A Credit Union
http://www.ncua.gov/Resources/CreditUnionDevelopment/Start.aspx
How To Start Up A New Credit Union
http://www.creditunionsforyou.com/start.html
How to Start A Credit Union | eHow.com
http://www.ehow.com/how_5878707_start-credit-union.html
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How To Start A Credit Union
http://www.mademan.com/mm/how-start-credit-union.html
JOBS
http://www.ehow.com/careers/
National Association of Credit Union Workers
http://www.nacuw.org.uk
National Association of Federal Credit Unions NAFCU:
http://www.nafcunet.org /
National Credit Union Administration (NCUA)
http://www.ncua.gov/
National Federation of Community
http://www.natfed.org/
Navy Federal Credit Union
http://www.navyfederal.org/
Scottish League of Credit Unions
http://www.scottishcu.org/
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Service Credit Union
http://www.servicecu.org/
Start Own Credit Union
http://www.streetdirectory.com /
UK Credit Unions
http://www.ukcu.co.uk/
World Council of Credit Unions
http://www.woccu.org/
Youth Credit Union Network
http://www.natfed.org/i4a/pages/index.cfm?pageid=285
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SECTION 10
FINANCE
RESOURCES
Banks Credit Unions
http://www.ehow.com/banks--credit-unions/
Credit Unions
http://www.ehow.com/credit-unions/
How to Start a Credit Union Bank
http://www.ehow.com/how_6884454_start-credit-union-bank.html
How to Charter a Credit Union
http://www.ehow.com/how_4454678_charter-credit-union.html
How to Choose Between Credit Unions and Banks
http://www.ehow.com/how_5065204_choose-between-credit-unions-banks.html
How to Cancel My Monthly TransUnion Credit Report
http://www.ehow.com/how_6835534_cancel-monthly-transunion-credit-report.html
How to Get Credit Union Loans
http://www.ehow.com/how_6197723_credit-union-loans.html
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SECTION 9
CREDIT
RESOURCES
Bank
http://en.wikipedia.org/wiki/Bank
Bond of association
http://en.wikipedia.org/wiki/Bond_of_association
Collective investment schemes
http://en.wikipedia.org/wiki/Collective_investment_scheme
Consumer Credit Act 1974 (UK law)
http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974
Cooperative
http://en.wikipedia.org/wiki/Cooperative
Corporate finance
http://en.wikipedia.org/wiki/Corporate_finance
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Credit union
http://en.wikipedia.org/wiki/Credit_union
Democratic member control (cooperatives)
http://en.wikipedia.org/wiki/Democratic_member_control_(cooperatives)
Financial economics
http://en.wikipedia.org/wiki/Financial_economics
Financial market
http://en.wikipedia.org/wiki/Financial_market
Financial market participants
http://en.wikipedia.org/wiki/Financial_market_participants
Financial regulation
http://en.wikipedia.org/wiki/Financial_regulation
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Finance series
http://en.wikipedia.org/wiki/Finance
Friedrich Wilhelm Raiffeisen
http://en.wikipedia.org/wiki/Friedrich_Wilhelm_Raiffeisen
History of credit unions
http://en.wikipedia.org/wiki/History_of_credit_unions
Insurance companies
http://en.wikipedia.org/wiki/Insurance
Investment banks
http://en.wikipedia.org/wiki/Investment_banking
Pension funds
http://en.wikipedia.org/wiki/Pension_fund
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Personal finance
http://en.wikipedia.org/wiki/Personal_finance
Political and economic theories
http://en.wikipedia.org/wiki/Co-operative_economics
Prime Brokers
http://en.wikipedia.org/wiki/Prime_brokerage
Public finance
http://en.wikipedia.org/wiki/Public_finance
Savings and loan association
http://en.wikipedia.org/wiki/Savings_and_loan_association
Trusts
http://en.wikipedia.org/wiki/Trust_company
World Council of Credit Unions
http://en.wikipedia.org/wiki/World_Council_of_Credit_Unions
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