LUBBOCK, Texas - NCUA approved a program proposed by Texas Tech FCU to allow students, faculty and alumni of Texas Tech University to buy gift cards at the credit union to finance millions of dollars of football tickets, refreshments and booster merchandise.
In a legal opinion letter, NCUA said “it is within the FCU’s incidental powers to offer this financial service to the issuer of the gift card if the issuer is a member of the FCU.” The university is both the sponsor and a member of the CU.
“The athletic department at the university contacted us and asked us if we could do it,” Chris Hutson, CFO of the $52-million credit union told Credit Union Journal.
Under the plan, TTFCU would receive funds electronically from the purchaser on behalf of the athletic department into a CU account.
The co-branded Visa gift cards would be sold in denominations up to $1,000 and would bear the mascot of the Texas Tech Red Raiders as well as the credit union’s logo, said Hutson.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
