HEADLINE NEWS

Bob Walls Appointed New Jersey League President
     Delaware’s loss became the New Jersey Credit Union League’s (NJCUL) gain when the NJCUL board of directors appointed Bob Walls as the League’s new president/CEO. Bob will assume leadership of the league on July 25.
     Bob has been the president of the Delaware League since 1992. In this role he has been actively involved in legislative affairs, worked to improve the quality and efficiency of services offered by the Delaware League to its members, and continued to advance the CU movement on the national level. Nationally, he has served in the following leadership positions:
§         Member of the Credit Union National Association’s board of directors,
§         Chairman of the Credit Union House board, and
§         Active within the American Association of Credit Union Leagues (AACUL).
     Delaware League board chairman Jim Everhart responded to the news of Walls’ appointment: “On behalf of the board of directors, I would like to thank Bob for his dedicated service for the last 13 years and wish him the best with all his future endeavors. As a direct result of Bob’s dedication to the credit union movement and professional guidance, our league has maintained 100% affiliation and gained both local and national political recognition. As the League board moves forward with our search process, we will be looking for a replacement that will continue to build on the foundation that has been established.
     “In the interim, Jane Bailey will be acting president. The board feels confident of Jane’s ability to fill this role, since she has served as executive vice president during Bob’s tenure. We are sure with the staff we have in place that your league will continue to provide the services Delaware credit unions have come to expect.”   

Preliminary Escheat Report Due August 1, 2005
     All credit unions are required to make a preliminary report to the Delaware State Escheator at the Bureau of Unclaimed Property by August 1, 2005. The report lists unclaimed property, which refers to various types of personal property of Delaware residents that has been abandoned for five years or more, including share and share draft accounts, uncashed share drafts, dividends, etc.
     Every Delaware CU, regardless of whether it holds unclaimed property, must file a copy of Form AP-1 (Report Verification), which provides a summary of the CU’s report and which must be signed and verified by a CU officer. An additional itemized form must be completed if you hold unclaimed property. The preliminary report is due in August, and the final report and remittance of monies in any such accounts are due by November 10, 2005. During that three-month interval, CUs need to advertise the existence of these abandoned accounts.
     Unclaimed property forms and a booklet describing the process for submitting unclaimed property is available at www.state.de.us/revenue (click on “abandoned property”). The League has sent a full packet of escheat information, including those materials, to each CU manager/CEO.
     Remember, amounts in excess of $25 must be reported to the state of the member’s last known address. You will need to contact each applicable state to obtain the correct filing forms, deadlines and dormancy periods (which vary state to state). For example, in Maryland the dormancy period is only three years before abandoned property must be turned over to the state of Maryland.
     Contact Susan Fallon if you need contact information for other states or if you need more detailed escheat reporting information.

COMPLIANCE RECAP

Agencies Unveil BSA/Anti-Money Laundering Manual
     The Federal Financial Institutions Examination Council (FFIEC) has released a Bank Secrecy Act/Anti-Money Laundering examination manual. The manual is intended to be a compilation of existing regulatory requirements, supervisory expectations, and sound compliance practices. It does not seek to impose new standards.
     The manual was developed by the FFIEC in collaboration with the Financial Crimes Enforcement Network (FinCEN), which is the delegated administrator of the Bank Secrecy Act. The FFIEC membership is comprised of the Board of Governors of the Federal Reserve Board, Federal Deposit Insurance Corp., National Credit Union Administration, Office of the Comptroller of the Currency, and the Office of Thrift Supervision. A copy of the manual can be found online at www.ffiec.gov/pdf/bsamanual.pdf.
     The Credit Union National Association (CUNA) is also planning to issue later this summer a Bank Secrecy Act Compliance and Training manual to provide CUs with a comprehensive handbook for fulfilling BSA and OFAC obligations.

FinCEN Revised “Designation of Exempt Person” Form
     July 2005 is the date that the U.S. Treasury Department will begin accepting this revised FinCEN form. The form is currently used by depository institutions to designate their eligible members/customers as exempt from the requirement to report transactions in currency over $10,000, meaning the institution does not have to file Currency Transaction Reports (CTRs) on those particular members/customers. The new form to replace the form currently being used (TD F 90-22.53) will be FinCEN Form 110. Other editions of this form will not be accepted after the end of 2005.

2004 Tax Form Corrections
     Time is running out to make corrections for 2004 tax statements, including IRS Forms 1099-R, 1099-Q, 5498, and 5498-ESA. All corrections need to be submitted to the IRS by August 1.   

TIS Amended to Address Bounce Protection Programs
     The Federal Reserve Board has amended Regulation DD, which implements the Truth in Savings Act, and the staff commentary to the regulation to address concerns about the uniformity and adequacy of information provided to consumers when they overdraw their deposit accounts. The amendments, in part, address certain types of services – sometimes referred to as “bounced check protection” or “courtesy overdraft protection” – which are offered by many depository institutions to pay consumers’ checks and which allow other overdrafts when there are insufficient funds in the account. These services are typically automated services provided to transaction account consumers as an alternative to a traditional overdraft line of credit.
     Among other things, the final rule creates a new section to the regulation that requires institutions that promote the payment of overdrafts in an advertisement to disclose on periodic statements, total fees imposed for paying overdrafts and total fees imposed for returning items unpaid on periodic statements, both for the statement period and the calendar year to date, and to include certain other disclosures in advertisements of overdraft services. The rule is effective July 1, 2006.

Junk Fax Bill Update
     President Bush signed the Junk Fax Prevention Act into law on July 9. It is now Public Law 109-21. The Act will allow businesses and organizations to continue to send commercial faxes without prior permission as long as they have an established business relationship with the recipient. Faxes are also allowed when a new business relationship is established as long as the fax number was provided by the recipient or published in a directory, advertisement, or website.
     In addition, the Act will require that fax recipients must be notified about their options for opting out of receiving commercial faxes on the first page of every fax. The method for opting-out must be free to the recipient, such as the use of a local or toll-free telephone number. The effective date of the rule has been pushed back until January 9, 2006.

SYSTEM NEWS

Ninth Annual Volunteer Leadership Conference – October 15-16
     Save the date! The Delaware and Maryland Leagues are again co-hosting the Volunteer Leadership Conference on October 15-16 at the Clarion Resort Fountainebleau Hotel, 101st Street/Oceanside, in Ocean City, Maryland. To reserve your room, call the hotel at 1-800-638-2100 no later than September 14.  To receive the group rate of $114 per room/per night, you must identify yourself as part of the Delaware/Maryland Credit Union League Volunteer Conference.
     This year’s topics will include ways to revitalize your credit union and breakout sessions for board members and supervisory committee members. Credit unions and board chairmen will receive a full brochure with program listing and registration information sometime in late July. The conference is held for a full day on Saturday and until 11:30 a.m. on Sunday. Attendees can pick up their conference materials on Friday evening, October 14.
     For more information, contact Alice Smith at the Delaware League.

Delaware CUs Are Asked to Support Credit Union House
     Bob Walls, who is the current chairman of the Credit Union House board of directors, recently sent a letter to Delaware credit unions asking them to consider putting an annual contribution to Credit Union House in their yearly budgets. Credit Union House, located near Capitol Hill in Washington, D.C., serves as a nerve center of activity for credit union CEOs, staff, leagues, and volunteers preparing for visits with lawmakers. It also provides educational facilities and rooms to host Congressional receptions. Credit Union House currently has annual operating expenses of over $525,000. Credit unions making an annual contribution (various levels of giving are available) can help keep Credit Union House as an on-going, vibrant presence in Washington for credit unions and their members, according to the letter from Walls. Contributions can be sent to Credit Union House on Capitol Hill, 403 C Street, NE, Washington, DC 20002.

“Members Make It Happen” Is 2005 ICU Day Theme

     “Credit Unions: Members Make It Happen" has been selected as the official theme for this year's International Credit Union Day (ICU Day), scheduled for Thursday, October 20. The theme, voted on via an online poll on the World Council of Credit Unions’ website, was created to demonstrate the vital role that members play to the existence of credit unions.
     For 55 years, CUs have set aside the third Thursday in October to celebrate International CU Day. Over 123 million CU members belonging to 40,421 credit unions worldwide celebrate this day.
     CUNA's web pages for ICU Day are in place and contain this year's artwork, along with educational and promotional materials for ICU Day.  During mid-July, CUs will receive a full color poster (as seen above), plus free planning resources. In addition, a variety of free planning resources are also available online, including CU statistics, sample press releases and letters to the editor, various marketing ideas, and official artwork and graphics, among others. 
     For more information about International Credit Union Day, go to http://www.cuna.org/ and type "International Credit Union Day" in the search box.                                       

Offer Teachers a Resource as They Go Back to School
     If your local high school doesn’t have a resource to teach students about basic money matters, why not give them one – free!
     The High School Financial Planning Program (HSFPP) instructor’s manual and student guides were developed by the National Endowment for Financial Education (NEFE). The HSFPP is a curriculum that CU people can take into schools to give presentations or provide to teachers. The kit’s seven units cover spending and saving money, using and managing credit, and more. For further information, contact Alice Smith at the League. 

DELAWARE NOTES 

Congratulations to David Clendaniel, president/ CEO of DOVER FCU, who was recently installed as the new chairman of the board of the Central Delaware Chamber of Commerce. On another note, DOVER FCU staff showed their support for our troops by participating in a “red, white, and blue” casual day, in which $180 was raised for the USO.

Our condolences to CHESTNUT RUN FCU board member Nancy Banis on the recent death of her husband Ben.

Get well wishes to DUPONT STINE HASKELL EFCU manager Sam Simpson, who is recovering from surgery. If you would like to send a card to either Sam or Nancy, contact Ruth Lawley at the League for their home addresses.

Congratulations to Jerry King who became the president/CEO of DEXSTA FCU on July 1. He succeeds Christine Kaczmarczyk, who retired at the end of June after 38 years of CU service.

CHESTNUT RUN FCU held its member fair on June 23, with food, games, and prizes for members at both the Chestnut Run and Glasgow Site locations. Approximately 400 members attended.
 

Banking Internal Auditor Sun East FCU has a full time opening for an internal auditor in its Aston, PA, location. Candidates need a college degree with a minimum of 24 college hours of accounting. CPA, CIA, or CISA designations preferred. Minimum three years of professional auditing experience with a financial institution, credit union exposure preferred. Proficiency in MS Project, Excel, Word and PowerPoint is preferred. Qualified candidates should submit their resumes with salary requirements to: Human Resources, Sun East Federal Credit Union, P.O. Box 2231, Aston, Pa 19014. Fax: 610-485-3011. Email: Kleach@suneast.org

EDUCATION OPPORTUNITIES

CANCELLED  Board of Directors Workshop: Recruiting CU Volunteers – Wednesday, July 20, 5:30-8:30 p.m.,

League Council Meetings in July/August
7/21      Human Resource Council – 10 a.m.-1 p.m.
7/27      Cards Council: Emerging Plastic Risks – 10 a.m.-1 p.m.
8/17      Mortgage Council: Compliance and Interest-Only Loans – 10 a.m.-1 p.m.
No fee for council members; $65 for non-council members. Enroll with Ruth at the League no later than two weeks before each session.

July/August QuickBites Teleconferences
7/19      Introduction to CUs – 11 a.m.-noon
7/20      Call Center Member Service –11 a.m.-noon
7/26      Reg B Discrimination: ECOA, FACT Act – 11 a.m.-1 p.m.
7/28      Indirect Lending vs. Auto Recapture – 11 a.m.-noon
8/2        Delivering Difficult Feedback – 11 a.m.- noon
The fee for each one-hour session is $99; the two-hour session is $169. Unlimited staff participation at each CU site. Deadline for registration is one week prior to the session. Call Bernadette to enroll. Summer registration special: Target gift card!

One-Hour BSA Compliance Webinars
§         Tues., July 19, at 10 a.m. – CTR and SAR Form Filing Details
§         Tues., July 19, at 2 p.m. – OFAC, CTR, and FinCEN Exemption Form Filing Details
§         Wed., Aug. 10, at 2 p.m. – Bank Secrecy Act
§         Thurs., Aug. 18, at 10 a.m. – USA Patriot Act and OFAC
The fee for each session is $100. For more information or to enroll, phone Don Baumann of the co-sponsor Verisure at 315-638-4334.

Bankruptcy Reaffirmation Webinar – July 21 from 1-2:30 p.m. Presented by the North Law Firm. The session will explain changes in the law and will focus on ways to protect credit union interests as they pertain to the new rules, reaffirmation agreements, automatic stays, etc. Cost $125. For more information and to register, go to http://www.culaw.com

Regional Training Events
§         Penn State Judge/Bradley CU School. August 7-11, at the Penn State Conference Center Hotel in State      College, PA. This leadership development program is designed to meet the educational needs of CU management staff. Fee: $645. Regis. deadline: July 22.  
§         2005 CU Directors’ Institute. August 12-13, at the Nittany Lion Inn and Conference Center, State College,       PA. Designed for CU directors and volunteers. Fee: $350. Regis. deadline: July 10.
§         2005 North Law Firm Bankruptcy Conference for CUs. This conference, co-sponsored by the Delaware       League, is being offered in two locations in 2005: St. Pete Beach, Florida, on August 8-12, and Las Vegas,       Nevada, on December 5-9. With bankruptcy reform on the way, CU professionals must rethink how they analyze and fight bankruptcy cases. This in-depth program will provide practical information and training to help your CU handle consumer bankruptcy cases. Fee: $825 after July 8. Register online at www.nlfbkconference.com or call Alice Smith at the League for a brochure.

 

League Activities in June

COMMUNICATIONS/PUBLIC RELATIONS

        Risk Alerts. The Delaware League’s risk alert system is designed to communicate important, time-sensitive information. This information is disseminated through email and faxes to all credit union offices and branches. In the past month, Delaware CUs have reported that their members have received several phishing schemes purporting to be from NCUA and/or CUNA. In addition, CUs nationwide have received suspicious new member applications, which turned out to be from an investment firm who sent the inquiries in anticipation of credit union conversions.

        League Clipping Service. The League assembled newspaper clippings regarding the League and Delaware credit unions for the first half of 2005 and mailed them to all credit union CEOs/managers.

GOVERNMENTAL AFFAIRS/POLITICAL ADVOCACY           

        Coalition of Credit Unions for CURIA.  Duke Strosser, president/CEO of Delaware FCU, is Delaware’s representative to the Coalition of Credit Unions for CURIA. The Coalition was created to help credit union CEOs become more directly involved in supporting CURIA. This includes educating their employees, boards and members about the importance of CURIA, as well as educating their peers and asking federal lawmakers to support this legislation.
     The bill offers more than a dozen regulatory relief provisions for credit unions. To date, 76 U.S. House Representatives from across the country have signed on as co-sponsors to CURIA, which was reintroduced by Congressmen Ed Royce (R-CA) and Paul Kanjorski (D-PA) on May 12, 2005. The Credit Union Regulatory Improvements Act (CURIA) is a top legislative priority for credit unions, leagues and CUNA.  Duke will be contacting all Delaware credit unions and encouraging them to write to Congressman Castle in support of this legislation. Currently the League has received only two copies of letters sent to Congressman Castle – from Duke and Dawn Sutcliffe of Delaware Alliance FCU. Make sure to send a copy of any CURIA correspondence to Alice Smith at the League office. 

        CU House Contribution. The League Governmental Affairs Committee voted to donate $1000, on behalf of Delaware credit unions, from the GAC Fund to help support Credit Union House.

        Delaware Senate Bill 109 – Credit Freeze Legislation. George Fitzgerald of the League Governmental Affairs Committee continues to keep the committee informed on the progress of the Consumer Credit and Identity Theft Protection Act, Delaware SB109. This act is sponsored by Senator Venables and co-sponsored by Senator Sokola, who is also a member of the DEXSTA FCU board. The proposed legislation would allow any adult Delaware resident to originate and indefinitely place a pin-controlled credit report freeze on his/her file at all credit bureaus to help impede identity theft.

        Project Zip Code. The League has distributed the 2005 version of Project Zip Code, a software program made available through CUNA and the League, which is designed to allow a credit union to match its members, by zip code, to state and federal legislative districts. Currently 10 credit unions have completed the project: Chestnut Run, Delaware, Delaware Alliance, DEXSTA, Dover, First State, ICI America, Louviers, Provident, and Wilmington Postal.

DELAWARE LEAGUE SERVICES

         Allpoint ATM Network. Twelve Delaware CUs have signed agreements for the Allpoint surcharge-free ATM network. The 43 participating CUs in the Mid-Atlantic region have accumulated close to 200,000 accounts (35,000 of these are in Delaware). With 32,000 ATMs nationwide, Allpoint is the nation’s largest surcharge-free ATM network. A complete listing of Allpoint ATMs is available online at www.AllpointNetwork.com.          

EDUCATION AND TRAINING 

        NCUA PALS Conference. Eleven Delaware credit union representatives, including two League staff members, attended NCUA’s workshop on CU efforts to knock out predatory lending on July 7. The summer Partnership and Leadership Success (PALS) meeting in Baltimore featured nine speakers with advice to CUs on how to improve bottom lines, as well as get rid of predatory lending. The Delaware League was one of the co-sponsors of the event that drew more than 225 attendees from 25 states. Delaware attendees included Maurice Dawkins – American Spirit FCU; Dawn Sutcliffe and Savannah Jarrell – Delaware Alliance FCU; Carole Langiu and Karen Beers – Dover FCU; Anthony Hinds – DPL FCU; Pam Slater and Dorlene Fox – Milford Memorial FCU; Vanessa McCall – Newport Site EFCU; and Bernadette Hines and Alice Smith of the League.

         Quickbites and Webinars. We continue to partner with the Illinois League to offer the Quickbites teleconferences. The League has also partnered with the Verisure Company to present monthly webinars on the Bank Secrecy Act, USA Patriot Act and OFAC, risk management issues, and ACH. Most recently, we have partnered with the North Law Firm in California to provide a series of webinars on the new bankruptcy act, which for the most part will become effective on October 17, 2005. The sessions will explain changes in the law and will focus on ways to protect credit union interests as they pertain to the new rules, reaffirmation agreements, automatic stays, etc.

         June Education Sessions

DATE	Session	Speaker	# Individuals	# CUs
06/01/05	Supervisory Comm. Wkshp, Loan Reviews/Recs	Idora Russell	37	14
06/01/05	Identity Theft	Webinar/Verisure	Info. unavail.	Info. unavail
06/02/05	Accounting Analysis	Idora Russell	14	10
06/02/05	Basic Budgeting	Idora Russell	11	7
06/03/05	Federal Reserve CU Council Meeting		3	2
06/14/05	Frontline Frauds	Webinar/Verisure	Info. unavail.	Info. unavail
06/15/05	Back-office frauds	Webinar/Verisure	Info. unavail.	Info. unavail
06/15/05	Mid-Atlantic Training	ACH	25	14
06/16/05	NLF Bankruptcy Reform	Webinar	2	2
06/16/05	Bank Secrecy Act	Webinar/Verisure	Info. unavail.	Info. unavail
6/15-6/18	CUNA Mutual's Discovery Conference		3	2
06/21/05	USA Patriot Act & Office of Foreign Assets Control	Webinar/Verisure	Info. unavail.	Info. unavail
6/21-6/22/05	Bank Secrecy Act Compliance Seminar	CUNA	1	1
06/22/05	CTR & SAR Form Filing Details	Webinar/Verisure	Info. unavail.	Info. unavail
06/23/05	OFAC, FinCEN & CTR Exemption Form Filing Details	Webinar/Verisure	Info. unavail.	Info. unavail
06/29/05	Marketing Council	Vision Ink.	20	13