Former Corp Moves Forward As Alloya
WARRENVILLE, Ill.-As the member CUs of Members United Bridge Corporate Credit Union move forward with an attempt to capitalize and charter a new corporate to replace the failed one, the group has been given the go-ahead for its chosen name: Alloya.
"We wanted something totally new and different because we're a brand new corporate and a different type of corporate," said John Fiore, CEO of Motorola Employees CU and chairman of the advisory board charged with creating a new corporate that aims to eventually acquire the Members United Bridge Corporate.
Fittingly, "Alloya" is, itself, an alloy of several words that bring meaning to the name: "all," "alloy" and "loyal."
The "all" in Alloya denotes the fact that the new corporate will be open to all credit unions, Fiore explained. "Alloy" reflects the corporate and natural-person CUs working together. "And 'loyal' is because we will be loyal to our member credit unions, and we hope they will be loyal to us."
A video about the name is available at www.membersunited.org/membersadvisorycouncil/alloya.html.
"Our [charter] application has been filed [with NCUA], but first we have to prove that we can become a successful corporate and get capitalized," he related. "NCUA has already approved our capitalization plan, which is one of the unique aspects of this corporate. It's based on usage and three-day settlements, instead of a percentage asset size. We believe that will mean less [of a capital burden] on individual credit unions. Instead of 1% of your asset size, in most cases this formula will calculate out to less than half a percent of assets."
Alloya hopes to have its capital call out to members early this month-possibly as early as May 5, Fiore said. The goal is to have enough capital in place by the end of August so Alloya can seek final NCUA approval.