frequently asked questions
1. WHAT IS A CREDIT UNION?
A credit union is an association of people, united by a common bond, who have incorporated under state or federal law in a mutual endeavor to: Provide a safe and convenient means of encouraging thrift through systematic savings.
Provide funds from which members may obtain low cost loans for provident and productive purposes.
Provide members an opportunity for learning how to improve the management of their financial affairs through a cooperative and democratic organization.
2. WHO OWNS THE CREDIT UNION?
YOU, as a member, own the credit union.
3. WHO RUNS THE CREDIT UNION?
Control of the affairs of a credit union is vested in a Board of Directors, elected by and from the membership. An annual membership meeting must be held each year. At this meeting the officials report to the members, the election of new officers is conducted, and other business affecting the credit union is acted upon.
A Credit Committee consisting of three or more members, also elected by the membership, is charged with the responsibility of approving all loans made by the credit union.
A Supervisory-Audit Committee consisting of three or more members, also elected by the membership, is responsible for the regular examination of all the books and records of the credit union. This is in addition to our annual Federal examination.
The Board and the committee members receive no pay for their service.
4. WHO IS ELIGIBLE TO BE A MEMBER?
The field of membership shall be limited to employees of the Maumee Board of Education and members of their immediate families and retirees.
5. HOW DOES A PERSON BECOME A MEMBER OF A CREDIT UNION?
Contact the office or an officer. A member may be able to direct you to the appropriate person. A membership card needs to be filled out by the person applying , agreeing to participate in the savings program of the credit union A minimum deposit of $5.00 (share) creates the account. A payroll deduction plan for your convenience is provided by the Board of Education.
6. WHAT KINDS OF ACCOUNTS ARE THERE?
Single Account — held by one member only
Joint Account — held jointly by the member and any other person such as husband, wife, or dependent children. A joint account requires signatures of both members on the membership card. Either member may deposit and/or withdraw savings from the account.
7. WHAT IS THE CRITERIA FOR APPLYING FOR A LOAN THROUGH THE CREDIT UNION?
Only members can apply. If you are listed first on a joint account you are an “official” member. If you are the second name on a joint account you need to establish your own account in order to qualify.
8. HOW DO I APPLY FOR PAYROLL DEDUCTION?
Payroll deduction cards may be obtained from the credit union office or from the school payroll department.
9. HOW ARE DEDUCTIONS POSTED TO MY ACCOUNT?
Payroll deductions are deducted from every check, 26 pays, and are posted every paydate. When notification of a new sign-up or change in a present sign-up is received, the deduction will take effect with the next paydate (provided adequate advanced notice is received). If you wish to stop payroll deductions, send a signed note to the credit union office stating such.
10. DOES MY ACCOUNT REMAIN ACTIVE EVEN IF I DO NOT USE IT REGULARLY?
The credit union has no deposit/withdrawal requirements. However, the State of Ohio requires that the credit union forward the balance to the State if an account becomes "dormant". Dormant is defined as no transactions within the prior 60 months. We monitor and advise our members if their accounts may be in dormancy.
11. WHAT SHOULD I KNOW ABOUT WITHDRAWALS?
Withdrawals may be made in person at any time the office is open. A limit as to the amount to be withdrawn could depend on whether your shares are pledged as collateral on a loan.
12. DO I HAVE TO CLOSE MY ACCOUNT WHEN I RETIRE?
No. Retired members may keep their accounts open indefinitely. They can deposit and withdraw savings and borrow as they did before.
13. MUST I WITHDRAW MY SAVINGS WHEN I LEAVE THE SYSTEM FOR REASONS OTHER THAN RETIREMENT?
No. Once a member, always a member with full membership privileges.
14. ARE DIVIDENDS PAID ON SAVINGS?
Yes, dividends are compounded daily. The dividend is determined by the Board of Directors and depends on the credit union's net earnings.
15. WHAT IS THE MAXIMUM I MAY HAVE IN SHARES?
16. ARE MY SAVINGS PROTECTED?
Yes. Each member’s share (savings) account is insured to at least $250,000 by the National Credit Union Administration, an agency of the Federal government. This insurance gives Members the same kind of protection that FDIC and FSLIC provides customers of other financial institutions.
17. MAY I APPLY FOR MEMBERSHIP AND A LOAN AT THE SAME TIME ?
18. WHAT IS THE MAXIMUM AMOUNT I CAN BORROW?
You may borrow up to 10% (or 20% if your credit score is above 600) of the total shares in the Credit Union at that time, but it depends on security offered, ability to repay, and other credit factors.
19. WHAT KINDS OF LOANS DOES THE CREDIT UNION APPROVE?
The credit union offers secured and unsecured loans. Unsecured loans, such as signature loans usually have higher interest rates. Secured loans — Example - Such as auto loans are usually at a lower rate of interest.
20. WHAT SECURITY DOES THE CREDIT UNION REQUIRE?
Requirements are evidence of ability to pay and faithful intent. Every loan requires a witnessed promissory note, signed by the borrower. Further security such as shares, automobile, stocks, or comaker signature's) may be required as determined by the judgment of the credit committee or loan officer.
21. HOW ARE SIGNATURES WITNESSED?
The witness must personally see the borrower sign the note before affixing his/ her own signature.
22. WHAT DIVIDEND RATE IS PAID?
Current rates are determined quarterly based on the credit union's income.
23. WHAT INTEREST RATE IS CHARGED?
Current rates are determined by the directors and are reviewed quarterly.
24. CAN I RE-APPLY FOR A LOAN BEFORE AN EXISTING NOTE IS PAID OFF?
Yes, whenever the need exists, by filling out a new loan application.
25. WHAT HAPPENS TO MY LOAN IF I RETIRE OR LEAVE THE SCHOOL SYSTEM?
Payroll deduction stops; therefore, it is your responsibility to notify the credit union office and make arrangements to maintain payments as contracted. Payments must continue to be made each month to the credit union as originally structured.
26. CAN I MAKE ADDITIONAL PAYMENTS ON MY LOAN?
Yes, in any amount and at any time. You are charged interest only the number of days between loan payments. You never pay a penalty at your credit union when you pay your loan off early.
27. ARE CREDIT UNION RECORDS CONFIDENTIAL?
Yes, transactions are kept strictly confidential.
28. HOW ABOUT CHANGE OF NAME OR ADDRESS?
Notify your credit union office at once of name changes and address changes; also make notification if you leave the system, go on leave of absence, or are transferred.
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