Credit Union

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Credit Union

A corporation formed under special statutory provisions to further thrift among its members while providing credit for them at more favorable rates of interest than those offered by other lending institutions. A credit union is a cooperative association that utilizes funds deposited by a small group of people who are its sole borrowers and beneficiaries. It is ordinarily subject to regulation by state banking boards or commissions. When formed pursuant to the Federal Credit Union Act (12 U.S.C.A. § 1751 et seq. [1934]), credit unions are chartered and regulated by the National Credit Union Administration.

A credit union can be distinguished from other financial institutions by the fact that membership is ordinarily restricted to individuals who meet certain residential or occupational criteria. In addition, it can make loans of a more diversified nature than certain institutions, such as building and loan associations.

References in periodicals archive ?
Many credit unions provide decent interest for checking accounts,'' said John McCune, research director for the banking group at SNL Financial in Charlottesville, Va.
Credit unions with assets greater than $10 million, which choose to have an audit, must have that audit performed by a CPA or an appropriately licensed public accountant.
Credit unions are based on a simple operating principle: People should pool their money and, in turn, make loans to one another.
Additionally, the SECU leadership team collaborated with employees from Bethpage, Bellco and First Tech credit unions to learn first-hand about their specific implementation experiences and to form important synergies.
Premier America is one of at least three credit unions in the area that is using more liberal rules to expand its potential membership.
Equally important, the Fiserv Credit Union Group maintained long-standing relationships with current clients by renewing contracts with 973 credit unions in 2006.
Under the Federal Credit Union Act of 1934, credit unions under a community charter may admit members within a well-defined area or neighborhood.
The Security Breach Response program from Identity Theft 911 is a highly unique, cutting-edge solution designed to address virtually every aspect of identity theft and security breaches that ACUL member credit unions could face.
Nothing will change overnight, but credit unions eventually could see their possibilities for expansion limited and the status of some current members could become clouded.
This benefits credit unions in two ways: fostering member loyalty and creating growth," explained Larry Tankeloff, president of GalaxyPlus.
At stake in the lawsuit filed Monday against the National Credit Union Administration in District of Columbia Federal Court is the credit union membership of thousands of people in Ventura County and other credit unions nationwide.
The integration makes it possible for credit unions to automate the approval of near-prime loan applications based on underwriting from Lenders Protection.

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