End of An Era: No More
Savings Bonds For Sale
ALEXANDRIA, Va. - NCUA notified credit unions last week of the U.S. Treasury's termination of the sale of savings bonds through credit unions and banks at year-end.
"However, electronic savings bonds will remain available to customers for purchase through TreasuryDirect, a secure web-based system operated by the (Treasury's) Bureau of Public Debt," NCUA said in a new letter to CUs.
Credit unions may still redeem savings bonds for their members, and reissue paper bonds not yet matured that have been lost, stolen or destroyed.
NCUA urged credit unions to educate their members that they will no longer be able to buy paper savings bonds at their credit union or by mail order and that the drop-dead date for selling savings bonds at their credit union is Dec. 31.
The Treasury Department is offering a free toolkit that includes fliers, messages for account statements, Web banners, frequently asked questions and articles for newsletters to help communicate the changes.
The elimination of paper savings bonds is projected to save the Treasury $120 million over the next five years in printing, mailing, storage and fees paid to credit unions and banks for processing bond applications.
Missouri Corp. Hits Capital
Goal, Sending Refunds
ST. LOUIS - Missouri Corporate CU said its members have exceeded its capital call of $17.5 million, which will allow it to retain $20 million in perpetual contributed capital and return $2.6 million of the over-subscription to members.
"We are excited and pleased to refund the excess capital commitments to our members," said Dennis DeGroodt, president of the $450-million corporate. "The support of our members was overwhelming and well beyond our expectations. It is unusual, especially for a corporate credit union, to return excess capital commitments but that's exactly what we are doing. Right now, our members need the funds more than we do and we're very pleased we can return it to them."
Even with the refunds, Missouri Corporate said it remains adequately capitalized with a Leverage Ratio of 5.50%, a Tier-1 Risk Based Capital ratio of 114.3% and a Total Risk Based Capital Ratio of 151.9% (as of Sept. 27).
Missouri Corporate has 124 credit union members.
Corp. America To Offer Cards
IRONDALE, Ala.-- Corporate America Credit Union said it will begin offering debit and credit card services to its member credit unions through a new partnership with PSCU Financial Services, St. Petersburg, Fla. The $3.3-billion Corporate America works with more than 400 credit unions in 35 states.
Donovan Wins Revere Award
WASHINGTON - During NAFCU's Congressional Caucus here, Dawn Donovan of Price Chopper Employees FCU was recognized as the CUgrassroots activist of the year with the presentation of the 2011 Paul Revere Award.
The award recognizes individuals who regularly and effectively carry the credit union banner, just as Paul Revere was a messenger and symbol for American patriots before and during the Revolutionary War. It is based on the number of grassroots contacts made by individuals.
"Dawn has been instrumental in representing the credit union industry during a trying time for the financial services sector on Capitol Hill," said NAFCU President and CEO Fred Becker. "She goes above and beyond in assisting NAFCU's legislative and regulatory efforts."
Donovan has served as CEO of Price Chopper Employees FCU in Schenectady, N.Y., for 17 years.
