The Credit Union Difference
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to see a comparison of credit unions and banks to see how you
can benefit from using Lion Federal Credit Union.
What Is The Credit
Union?
What Is The Purpose
of the Credit Union?
Who Owns The Credit
Union?
Who Controls The
Credit Union?
What If I Am Already
Saving Through a 401K Plan or IRA?The Board of Directors
The Board of Directors
Loan Officers
Independent Audit/Firm
Who Can Join and What Does It Cost?
What Are Shares?
Is There A Minimum
or Maximum Investment Amount?
How Do I Withdraw
My Shares?
May Shares Be Owned In Joint Tenancy?
What Are Dividends?
How Are Payments Made For Shares?
What Rate Of Dividends Are
Paid On Shares?
May Membership Be Retained Upon Leaving
the Employment of a Patron Company?
Is A Membership Required Before
Applying for a Loan?
Is There a Waiting Period Before Applying for
a Loan?
What Are Interest Rates on Loans?
Why Borrow From the Credit Union?
Is
It Possible to Have More Than One Loan?
May a Loan Be Paid Off At Any Time?
How Are Payments Made On Loans?
How
Are Payroll
Deduction Changes Made?
Member
Responsibility
Notify Us If You...
What Is The Credit
Union?The Credit Union is a nonprofit financial cooperative owned and
operated by its members. The members pool their savings to
provide funds for loans and other services. This is done in
accordance with the provisions of the Federal Credit Union Act passed
by congress and signed into law by Franklin D. Roosevelt in 1934.
The Lion Federal Credit Union was formed in August of 1936 at the
request of employees and management of the Lion Oil Company.
Today, the Credit Union serves a growing number of select employment
groups in the El Dorado area.
What Is The Purpose
of the Credit Union?
First - To promote thrift by
enabling members to accumulate substantial sums of money by regular
installment savings through convenient payroll deduction.
Second - to provide a source of credit for loans with
reasonable repayment terms and saving options such as credit
life and credit disability insurance through a non profit co-op
available only to Credit Union members.
Who Owns The Credit
Union?
THE MEMBERS! It is owned and
operated by its members and each member has a voice and one vote at
the annual meeting held the first quarter of each year.
Directors and Committee members are elected at the annual meeting.
Who Controls The
Credit Union?
The Credit Union operates through a
Board of Directors and Supervisory Committee, as of whom are elected
by and from the membership. The Directors choose from their own
a Chairman, Vice-Chairman, and a Secretary-Treasurer.
What If I Am Already
Saving Through a 401K Plan or IRA?
That is great; don't stop! Financial experts recommend that we
all maintain 3 to 6 months in wages in a regular savings account as
an emergency fund. Your Credit Union share account is perfect
for this purpose. Regular saving establishes a "cushion"
between your family's finances and the "surprises" we all face from
time to time.
The Board of Directors
The Board of Directors sets the policies and directs the affairs of
the Credit Union. They must hold a meeting each month.
Loan Officers
Loan officers help the members in every possible way within reason
to handle credit needs and operate in strict confidence.
Independent Audit/Firm
An independent audit firm audits the Credit Union books of record
and accounts on an annual basis. The Credit Union is also
under the supervision of and is examined regularly by the National
Credit Union Administration (NCUA.)
Who Can Join and What Does It Cost?
Membership in Lion Federal Credit
Union is open to current or retired employees of Sponsoring Employers.
What Are Shares?
Shares are investments (savings) in the Credit Union.
Is There A Minimum
or Maximum Investment Amount?
One (1) share is $5.00 and is the minimum. Deposits are
insured up to $100,000 by NCUSIF (National Credit Union Share
Insurance Fund, an arm of the NCUA, which is a federal agency of the
U.S. Government.) Check with a staff member for specifics
regarding insurance on more than $100,000.
How Do I Withdraw
My Shares?
This may be done by notice to the office in person or via
telephone. Your withdrawals may be by check or cash. You
must advise the office of your account number and name when
withdrawals are requested. Your Credit Union membership card
must be presented to pick up a check. Telephone
requests for information will not be given without account number,
name and any other information needed to establish accuracy and for
security purposes. Shares which have been assigned as
collateral for a loan may not be withdrawn until the loan has been
repaid.
May Shares Be Owned In Joint Tenancy?
Yes. A joint account is owned by two or more people, and
each one has equal rights over and access to any funds in the share
account. A joint account card with the proper signatures must
be on file in our office. We recommend our credit union
members have a joint owner or beneficiary on all deposit accounts
because individual accounts are frozen in the event of the death of
the owner.
What Are Dividends?
Dividends are the portion of the Credit Union earnings paid to
members for the use of the funds in their share account.
Credit Unions pay dividends instead of interest because the
depositors are the owners of the Credit Union. This is one of
the major differences between credit unions and banks.
How Are Payments Made For Shares?
Payroll deduction
- You may have a specified amount deducted from your earnings each
pay period. The frequency of deductions per month is made
according to the agreement between your employer and the Credit
Union. The amount being deducted may be changed by a member.
Payroll deductions start, change and/or stop only by a
member's signature on a designated form. The Credit Union
makes changes once a month and must be done by the 20th of each
month for the following month.
Direct
- Deposits for shares may be made in person at the Credit Union
office or by mail. We suggest you send only checks or money
orders when mailing. We also accept Direct Deposit and ACH
deposit. Talk to one of our staff members for instructions on
routing information for these options.
What Rate Of Dividends
Are Paid On Shares?
The dividends are determined by the amount of income generated from
loans, investments, and fees. The Credit Union Board of
Directors evaluates the Credit Union income and expenses and declares
a dividend at the end of the quarter based upon those earnings which
are available for distribution to shareholders. While the actual
amount of the dividends will vary, it is important to note that your
credit union is a nonprofit organization with high standards of
maintaining safety and soundness to keep the Credit union strong and
healthy. Dividends are paid on accounts that have an average
daily balance greater than $200.
May Membership Be Retained Upon Leaving
the Employment of a Patron Company?
Any member who leaves the employment
of a sponsor company for any reason may retain their membership with
the Credit Union.
Is A Membership Required Before
Applying for a Loan?
One fully paid share of $5.00 is
required and a $10.00 loan application fee will be charged with each
loan application. The loan application fee is waived on loans
secured by member's share account.
Is There a Waiting Period Before Applying
for a Loan?
Any employee of a sponsor company who
has been employed on a permanent basis for at least six (6) months may
make application for a signature loan. Each loan application is
evaluated on each applicant's merits. Credit reports are
obtained and updated periodically. Loan applications are
processed daily. An application can be taken on a secured loan
before 6 months of employment based on the strength of your credit
report and that you are considered a permanent employee.
What Are Interest Rates on Loans?
Interest rates depend on the type of loan and may vary from time to
time according to current market conditions and the strength of your
credit report.
Why Borrow From the Credit Union?
- Convenient payments by payroll deduction. Lower payments
than many other forms of credit.
- Optional - Credit Life and Disability Insurance through a
special nonprofit underwriter.
- Confidential Service
- Quality Service
- Loans for nearly all purposes
- Individualized attention to each request
Is It Possible to Have More Than One
Loan?
Yes, as long as each loan conforms to the loan policies established
for the Credit Union.
May a Loan Be Paid Off At Any Time?
Yes. Additional or partial payments may be made to reduce the
amount of interest collected. Loans may be paid in full prior to
the maturity rate without penalty.
How Are Payments Made On Loans?
Through payroll deductions. All deductions made for loans are
posted directly to loan as received.
How Are Payroll Deduction
Changes Made?
All deduction changes require your signed authorization.
Forms are available at our office that must be completed when any
change is desired. Changes are made on a monthly basis only.
When a deduction is made for loan payments, the deduction does not
stop automatically when the loan is repaid. After a loan is paid
in full, the deduction then goes to savings until a new change form is
signed.
Member Responsibility
Even though your employer provides payroll deduction, it is not the
employer's duty to advise the Credit Union of employee changes.
You Should Notify Us If You:
- Change your address
- Change your name
- Transfer within a company
- Change employers
- Lose your membership card
- Are no longer employed.
