All loan applicants must be members of this Credit Union with a minimum of $25.00 in shares before applying for secured credit. There is a 3 month waiting period for unsecured credit.
Joint owners of a members account may apply for credit if they meet the membership requirements and open their own share account with the $25.00 minimum, as long as the joint account has been in good standing for at least one year. This member will not have to wait the 3 months for an unsecured loan.
Required Minimum Share Balance
Members are required to maintain a certain minimum balance in their Regular Share account during the life of the loan types described below*. This required minimum share balance is a percentage of the unpaid loan balance and shall reduce as the outstanding loan balance reduces. These shares shall continue to earn interest at the same rate as all other regular shares.
*5% Minimum Share Balance
All loans secured by a Financing Statement shall require a member to maintain a minimum balance of 5% of the outstanding loan balance in their Regular Share Account.
*10% Minimum Share Balance
All Non-Secured Loan types shall require a member to maintain a minimum balance of 10% of the outstanding loan balance in their Regular Share Account .
Total loans to one member shall not exceed $100,000 and no individual loan to a member shall exceed $65,000 (excluding CDI) unless the loan(s) are fully secured by pledged Shares or Share Certificates of this Credit Union.
Maximum Number of Loans
Each account shall be permitted a maximum of 4 collateralized loans, 1 signature loan, and 1 special loan (ex: Holiday Loan) at one time.
No loan term shall exceed 120 months in duration.
There shall be no penalty for early repayment of any loan.
Loan interest shall be calculated daily on the unpaid principal balance.
Loan applications are taken daily and must be complete and accurate. All applications must be approved by the Credit Committee or Loan Officer. All information and credit reports are kept in strict confidence and are used solely by the Credit Committee for their judgment as to the member's credit worthiness and ability to repay.
We have two Loan Officers to make quick loan approvals on all loans that meet our regular lending criteria. Most loans can be approved on the same day that we receive the application. Please note that Home Equity and Mini-Mortgage Loans will be reviewed once the necessary searches and appraisals are complete. Loans that do not meet our lending criteria will still need to be reviewed by the Credit Committee on select Tuesday afternoons.
Fees and Charges
All fees and charges from third party sources such as: appraisals, title searches, mortgage filings, financing statement filings, and title encumbrances shall be paid by the borrower.
Please give a minimum of 2 hours notice for the disbursement of all New Loans and Line of Credit advances. Please call for an appointment for the disbursement of all Home Equity/Real Estate Loans.
Credit Disability and Credit Life Insurance
MEMBERS CHOICE Credit Disability and Credit Life Insurance are available at reasonable rates for qualifying members. The premiums are included in your monthly payment. If you have a balance on your loan and are totally disabled due to a covered injury or illness or in the event of your unexpected death, Members Choice Credit Disability and Credit Life Insurance may help.*
*Up to your policy maximums; per terms and conditions and exclusions on your Credit Insurance Certificate.
The Federal Credit Union Act provides that a Credit Union, because of it's membership structure, has an automatic Statutory Lien on your shares when you have an indebtedness with the Credit Union.
What this means to you
If you are in default on a financial obligation to the Credit Union, Federal Law gives the Credit Union the right to apply the balance of the shares and dividends in your account(s) at the time of default to satisfy that obligation. Once you are in default, the Credit Union may exercise this right without further notice to you.