Credit Unions
LoneStar Leaguer
Monday, March 05, 2007 7:00 AM

Today is Monday, March 5, 2007 and in this issue:

ONLINE REGISTRATION AVAILABLE FOR SCMS

TCUF FOCUS AWARDS ENTRIES DUE MARCH 16

WICHITA FALLS CHAPTER TO REPRESENT TCUL AND TEXAS CHAPTERS AT CMN CELEBRATION

PROACTIVE ID THEFT SOLUTIONS FOR CUs AVAILABLE THROUGH NEW STRATEGIC ALLIANCE

NCUA LEGAL OPINION: PERMISSIBILITY OF AN FCU MAKING A MBL TO A LAW FIRM WHERE CEO’S SPOUSE IS A PARTNER

OTS PROVIDES GUIDANCE ON GIFT CARD PROGRAMS





ONLINE REGISTRATION AVAILABLE FOR SCMS

Attention first, second and third-year Southwest CUNA Management School (SCMS) students, online registration for the summer program, July 8-18 at Texas Christian University (Fort Worth) is now available at http://www.cunaschool.org.  Potential first-year students are reminded that class size is limited, so if you plan to enroll, register early. 

SCMS offers a variety of courses designed to challenge, broaden financial industry knowledge, and sharpen management skills.  SCMS is a leader in professional education and credit union manager development in the Southwest.  For more than 40-years, SCMS has been a leader in management education and has served as an educational cornerstone for hundreds of credit union professionals.

First-year SCMS students will focus on the following key areas: 

  • ALM Fundamentals I & II
  • Credit Union Governance & Board/Management Relations
  • Credit Union Philosophy
  • Developing Your Credit Union’s Strategic Business Plan
  • Passion, Purpose & Performance
  • Risk Management
  • Technology I & II
  • The Secrets of Good Professional Writing

The emphasis in the second-year program includes:

  • Building a Lasting Brand
  • Coaching, Collaborating & Partnering
  • Compliance I
  • Developing Verbal Communication Skills
    for the Credit Union Executive
    Developing Your Credit Union’s Strategic Business Plan
  • Economic Outlook & Credit Union Investment Trends,
    Challenges & Innovations
  • Facility Planning: Managing &
    Preparing for the Future - The Retail Network
  • Financial Projections
  • Lending Trends, Challenges & Innovations
  • Talent Management I: HR Trends Challenges & Innovations

Third-year students will study among other things:

  • Business & Technology Trends
  • Business Ethics
  • Compliance II: HR Trends & Challenges
    Economic/Rate Outlook & ALM Trends/Strategies
  • Excelling in a Sales & Service Culture
  • Innovations II: Inventing Tomorrow
    Innovations III: Innovations in Consumer Finance
  • Scenario Planning
  • Talent Management II: Succession Planning for Board & Staff – Ensuring
  • Leadership Continuity & Building Talent from Within

Students in need of financial assistance are reminded that SCMS scholarships are available through the Texas Credit Union Foundation (TCUF).  The application deadline is April 23.  To obtain a scholarship application, please go to http://www.cunaschool.org/Registration.html.  

For more information on SCMS, please go to www.cunaschool.org.  If you have any questions, please contact SCMS director Janine McBee at, (469) 385-6634 or (800) 442-5762, Ext. 6634.



TCUF FOCUS AWARDS ENTRIES DUE MARCH 16

The Texas Credit Union Foundation (TCUF) will present the second annual FOCUS Awards at the Texas Credit Union League’s (TCUL) Annual Meeting & Convention April 10-13 in Austin.  The awards will be presented during the Volunteers’ General Session and Breakfast April 12 at 8:00 a.m.  Entries for this year’s awards are due by March 16.

The three FOCUS Awards categories recognize the individual, credit union and chapter that best exemplify the credit union philosophy of “people helping people” through financial education. 

“We want to recognize and reward the efforts of the Texas credit union movement in advancing financial education, especially with Texas school children,” says Jill Pharr, TCUF executive director.  “What better way to celebrate their efforts and dedication than to present these awards before an audience of peers during Financial Literacy Month.”

Winners in each category will receive a commemorative plaque, recognition in all TCUF publications plus a $1,000 grant toward any TCUL training or conference event. 

To enter, applicants must complete a “Focus Award” form which can be found on the TCUF website, at www.tcuf.coop.   Entries must be submitted to TCUF on or before March 16.

Information from all entries will be placed into a best practices database for use by other volunteers, credit unions and chapters that want to develop financial education programs in their communities.



WICHITA FALLS CHAPTER TO REPRESENT TCUL AND TEXAS CHAPTERS AT CMN CELEBRATION

The Credit Unions for Kids campaign has helped by offering the finest healthcare to children, giving thousands of kids a second chance at living happy and productive lives.  In recognition of credit unions participation and commitment to children’s hospitals, Children’s Miracle Network (CMN) invites credit union representatives throughout the country to attend and participate in the “Annual CMN Celebration” at Walt Disney World in Orlando, Florida, April 2-4, 2007. 

Each year, TCUL awards the chapter with the highest dollar raised per member the honor of representing all Texas Chapters and the League at the CMN Annual Celebration.  TCUL is honored to have Jerry Brady of Texoma Community CU and from the Wichita Falls Chapter representing Texas at this year’s celebration. 

“Brady is a deserving person for this honor.  He has been one of our behind the scenes organizer of our CMN program since he began with the credit union seven years ago,” expresses Texoma Community CU CEO Wayne Mansur. 

Brady, will have the opportunity to meet with the children and families and hear first-hand of the life-changing experiences that the CMN and Credit Unions for Kids program has provided.  When asked about the uniqueness in the purpose of CMN and the Credit Union Philosophy, Brady states, “ Both organizations have similar missions in that they are driven in helping people and do it with compassion, kindness and a willing heart.”  Additionally, Brady and his wife share a passion and strongly support the CMN cause stemming from a personal experience that has allowed CMN to be an outlet for them.

Festivities at this year’s Celebration kick-off with the annual pin exchange where attendees have the opportunity to meet and talk with some of the children and families your fund raising efforts help.  For Brady, “I look forward to seeing the joy in the children and their families who have been helped by the CMN and Credit Union for Kids program and wishing them continued wellness.”



PROACTIVE ID THEFT SOLUTIONS FOR CUs AVAILABLE THROUGH NEW STRATEGIC ALLIANCE

Proactively protect credit union members, employees, and the company itself against identity theft through the new strategic alliance between CUNA Strategic Services and LifeLock.

Unlike other credit monitoring services that only notify customers after a breach has occurred, LifeLock prevents identity theft from happening at all by rendering personal information useless to thieves. The company achieves this by maintaining active fraud alerts with the major credit bureaus, which gives its customers control of their own information, providing them the ability to authorize transactions such as address changes and the opening of credit lines. 

The company also backs its service with a $1 million guarantee to completely fix any problems if a client is ever compromised.

“When we began our search for a comprehensive identity theft solution for credit unions, LifeLock captured our attention with its $1 million guarantee, as well as the fact that its CEO, Todd Davis, is so confident in his company’s services that his social security number is featured on LifeLock’s Web site and marketing materials,” said Wes Millar, senior vice president of CUNA Strategic Services.

“Identity theft, labeled the fastest growing crime in America by the Federal Trade Commission, is a multi-billion dollar crime that hits young and old alike,” said Todd Davis, CEO of LifeLock. “Our agreement will help credit unions to supply members and employees with the most advanced tools to assure financial stability as well as educate them on real preventative answer to this crime.”

Credit unions have the option to offer this service to members free of charge or at a discounted rate. Protection is also available for children, who are frequently the targets of identity thieves. For employees, the service can be added to existing employee offerings or as an added benefit on an existing plan.

For more information, visit strategicservices.cuna.org, or contact Brenda Halverson, product manager for CUNA Strategic Services, at (800) 356-9655, ext. 4110, or by e-mail at bhalverson@cuna.coop.   



NCUA LEGAL OPINION: PERMISSIBILITY OF AN FCU MAKING A MBL TO A LAW FIRM WHERE CEO’S SPOUSE IS A PARTNER

Question: May a federal credit union (FCU) issue a line of credit to a law firm in which a CEO’s husband is a partner? 

Answer:  When the law firm is a separate corporate entity, an FCU may issue a line of credit.  The National Credit Union Administration’s (NCUA) member business loan (MBL) regulation prohibits FCUs from making member business loans to the chief executive officer, assistant chief executive officers, chief financial officers, and any “immediate family members” of these officials.  The prohibition on making member business loans to immediate family members of senior credit union officials is designed to avoid conflicts of interest in lending decisions. 

The credit union must ensure the CEO position is not used to influence the credit union’s decision to grant the line of credit because of the potential for conflict.  The credit union must apply its MBL policy, procedures and underwriting guidelines as usual.  The FCU bylaws provide that no director, committee member, officer, agent, or employee shall directly or indirectly, participate in the deliberation or determination of any question affecting his pecuniary interest of any corporation, partnership, or association in which he is directly or indirectly-interested.  Loan officers and/or credit committee should be informed the CEO may not influence the decision to grant credit. 

NCUA reminds FCUs that the MBL regulation requires principals of a business to give their personal guarantee to be liable for the debt, unless the Regional Director grants a waiver or the credit union is a RegFlex credit union

 Click here for a copy of NCUA Legal Opinion 06-1224.



OTS PROVIDES GUIDANCE ON GIFT CARD PROGRAMS

Gift card programs are a growing industry that more and more credit unions are offering their members.  The Office of Thrift Supervision (OTS) has published guidance for OTS-regulated institutions regarding compliance issues surrounding gift cards.  The purpose of the guidance is to assist the thrift industry, ensuring adequate account administration, marketing, and consumer disclosure practices for gift card programs; to encourage more uniform practices among thrifts that offer gift card programs; and to promote consumers’ understanding of gift card features while continuing to encourage product innovation.

Although the OTS does not regulate credit unions, their guidance may be helpful.  Click here for a copy of the OTS guidance.