Volume 27, Number 9 May 15, 2007

HEADLINE NEWS

Shiver Me Timbers! CUs Celebrate Youth Week
    "Stash Your Cash at the Credit Union" was the theme for the recently concluded sixth year of National Credit Union Youth Week, April 22-28. The pirate-themed artwork and slogan were chosen for the sixth annual event to entice young lads and lassies to forgo the coffers and stash their loot safely at the credit union instead.
    Youth Week began as an opportunity for credit unions across the country to focus on the financial needs of young people and provide financial literacy education. The event is considered a focal point for teaching the benefits of saving and goal setting, as well as inviting young people to open savings accounts at their credit union and make deposits this week and throughout the year.
    This year, 393 participating credit unions reported $10,133,355 in deposits from 71,844 young members. Additionally, credit unions also welcomed in 9,067 new member accounts.
    In Delaware, CUNA received reports from the following CUs that participated in the savings challenge:
American Spirit, Louviers, Preferred Financial, and Wilmington Postal.
    Other Delaware CUs held special activities for National CU Youth Week:
■ Delaware Alliance FCU gave every child a pencil and a coin purse with “stash your cash” on it. Members contributed to Children’s Miracle Network in order to guess how many pennies were in a jar. The winner received the jar and two tickets to Great Adventure.
■ DEXSTA FCU participated in the “Bring Your Child to Work” events at the DuPont Experimental Station. The CU continues to promote its Bill and Penny Club for young savers.
■ Dover FCU provided gifts and candies for the children that came into the CU that week.
■ Louviers FCU adopted the pirate theme by giving away treasure chest banks to the first five new accounts opened at each branch, as well as other pirate-related items.
■ Preferred Financial FCU extended the savings challenge through April. Youth members who saved in April received chocolate gold coins, prizes from a treasure chest, and a coloring workbook. Youth members up to age 13 took part in a Treasure Chest Coin Guess for cash prizes. Members 13-18 years old who saved were rewarded with a $5.00 gift card to Rita’s and the chance to participate in the Guides to Independence promotion. By completing all 12 categories in Guides to Independence, youth members became eligible to win $60 or an iPod or iTunes gift card. All eligible youth members who made a deposit were also entered into two drawings for $100.
■ Sussex County FCU participated in National Youth Week by kicking off its Kids’ Club Account, which offered an APY of 1.96%. Kids up to age 12 received a piggy bank, and kids 13-18, a chance in a drawing for an iPod Nano. Each new account opener received a kit containing coin wrappers, special deposit slips for kids, automatic transfer enrollment forms, etc. Each CU branch was decorated for Youth Week with lots of balloons and tables with refreshments and bagged treats. The CU also handed out “smencils” (scented pencils).
■ Also joining the National Youth Challenge, Wilmington Postal FCU gave away “loot bags,” which were filled with pirate goodies (gold coin candy, a treasure map, eye patch, and spy glass) for new youth accounts. Each adult registering a child received a Wilmington Postal thermal mug.
    The CU was decorated in the pirate theme, and younger children were encouraged to color a treasure map downloaded from the CUNA website; the finished masterpieces were then displayed.

COMPLIANCE RECAP

Get Ready to Post New NCUA Insurance Signs By May 22
     By May 22, 2007, your credit union must be using the National Credit Union Administration’s new share insurance coverage signs. The new signs reflect recent increases in the share insurance coverage on accounts and include a statement that federally insured shares are backed by the full faith and credit of the United States Government.
    There is a $100-a-day penalty for failing to post the necessary signs, which is triggered by the May compliance date.
    Official signs posted at locations where accounts are opened or funds are normally received, including teller stations and Internet sites, must be updated by May 22. All other materials that include the logo, such as account disclosures and marketing materials, must be updated by November 23, 2007.
    You can download the NCUA logos at: http://www.ncua.gov/data/IndexDownloadData.htm.

HUD: Foreclosure Rights for Servicemembers
     The Department of Housing and Urban Development (HUD) has released a final disclosure form for use by mortgage lenders to inform defaulting homeowners of possible mortgage and foreclosure rights that they may have under the Servicemembers Civil Relief Act (SCRA). The notice outlines the homeowner's rights under the SCRA, but the law requires the disclosure to be distributed to all homeowners who are in default.
    Jeff Bloch, senior assistant general counsel for the Credit Union National Association (CUNA), said that the requirement to send the disclosure to all borrowers in default should make compliance with the law easier for credit unions and other lenders. He noted that it may be difficult in some cases to determine whether a borrower is a servicemember or dependent of one. Additionally, he said, a borrower's status could change during the life of a mortgage loan.
    The disclosure requirements, Bloch said, apply to any loan secured by a mortgage or a home, such as home equity loans or lines of credit. More here: http://www.cuna.org/newsnow/07/wash042007-2.html.

FinCEN Delays Revised SAR Form Date
The Financial Crimes Enforcement Network (FinCEN) has announced that it is delaying the implementation of its new Suspicious Activity Report (SAR) form for depository institutions (among others) that was scheduled to become effective on June 30, 2007. This temporary delay allows FinCEN, working with the IRS, to make certain that data issues in a newly established Bank Secrecy Act (BSA) data quality management program are addressed before accepting the new SAR format.
Credit unions should continue filing using the current SAR form. FinCEN will establish new compliance dates for the revised form at a future time. For more details, view FinCEN’s notice at http://www.fincen.gov/sar_revised_form_implementation.pdf.

IRS Rules on Deferred Comp Plans – Section 409A
    Rules regarding Section 409A of the Internal Revenue Code governing nonqualified deferred compensation plans have been changed. Section 409A was added to the Code by the American Jobs Creation Act of 2004.
    Section 409A establishes specific requirements that certain deferred compensation plans must meet to receive tax deferral treatment. The regulations are effective as of January 1, 2008. Documentary compliance is required by December 31, 2007.
    All plans must be brought into compliance with the final regulations by January 1, 2008. Plans do not have to be retroactively amended for periods prior to the effective date; however, employers must be able to demonstrate operational compliance with Section 409A during the transition period. Noncompliance results in inclusion in income for all amounts deferred under the plan by a participant, interest (at the underpayment rate plus one percentage point), and a 20% penalty. Go to http://www.cuna.org/reg_advocacy/member/analysis/irs_042407.html for CUNA’s Final Rule Analysis, which outlines the provisions of the regulation.

SYSTEM NEWS

CUNA Mutual Policyholders Support Merger, Re-Domicile
CUNA Mutual Insurance Society (CMIS) policyholders overwhelmingly approved proposals to merge CMIS and CUNA Mutual Life Insurance Company (CMLIC) and, as a first step in the merger process, to change CMIS’ state of incorporation from Wisconsin to Iowa. More than 40,000 CMIS policyholders voted on the proposals, with 93% approving the merger and the state of domicile change.

Registration Open for 2007 CUNA Management School
     Effective credit union leadership takes time, skill, understanding, and the ability to constantly move forward. Each July, the University of Wisconsin and the city of Madison become home to credit union professionals who are investing in their careers and credit unions by attending the credit union movement’s longest-running high-level educational program. The 2007 CUNA Management School will be held July 8-20.
    In cooperation with the University of Wisconsin Graduate School of Business, this intensive management program helps you learn and implement principles that make you a more dynamic and effective credit union manager and leader. The academic training includes a two-week term over three consecutive summers. In addition to on-site sessions, you complete two written projects during the three-year period.
    First-year classes include: CU Philosophy and the Cooperative Culture; Serving Members of Modest Means; Team-Building Challenge; Basic CU Ratios; Asset-Liability Management I; CU Management; Project Orientation; Risk Management; Leadership Development; Business Writing; Lending; and Human Resource Management. For more information, go to http://training.cuna.org/on_site/CMS107_fct.html.

Register Early and Save for Supervisory/Audit Conference
     Early-bird registration ends May 23, for the Supervisory Committee & Internal Audit Conference, to be held June 24-27, at Caesars in Atlantic City.
    Supervisory committees and board members play a valuable role in evaluating the credit union’s security, strength, and compliance. The conference will cover the latest internal and external fraud risks; auditing tactics; and compliance issues.
    Register online today. Save $100 if you register before May 23. Credit unions under $20 million in assets receive a 25% discount. Single-day options are available. For more information, go to http://training.pcua.coop/on_site/PA06247_fct.html.

Statement Stuffer Revised for Latest IRA
Credit union members can learn about the latest changes to individual retirement accounts (IRAs) through one of several updated statement stuffers now available from CUNA.
■ "IRAs Power Your Savings" (stock #23655) explains the rules, requirements, and differences between the traditional and the Roth IRA. The revamped stuffer guides members through the changes in contribution limits for 2007 and beyond. An updated table on the financial effect of IRA contribution changes provides a side-by-side comparison of what the account would be worth for a 50-year-old worker - with and without taking advantage of catch-up contribution limits.
■ New suggestions for how to "Teach Children About Money" (stock #20875) were added to this duly named statement stuffer. Tips are divided into age-appropriate categories, along with a number of do's and don'ts for allowances, smart spending, giving, encouraging saving, and money as reward/punishment.
■ "Payday Loans: The Hard Truth About Some 'Easy' Money" (stock #22648) warns consumers about this phenomenon. It explains how much this so-called "convenient" service will cost them in the long run, and includes a new resource for cost calculations. It also provides better suggestions for acquiring small emergency loans.
For more information, to view a PDF version of the statement stuffers, or to buy online, go to www.buy.cuna.org, type "stuffers" in the search box or a specific stock number in the product finder box. To order through CUNA Member Service, call (800) 356-8010, press 3, and use the stock number as a reference.

DELAWARE NOTES

Congratulations to the members, staff, and volunteers of the following credit unions that are celebrating milestone anniversaries in May:
May 12 DEXSTA FCU 70 years
May 27 Newport Site Employees FCU 70 years

The board of directors of LOUVIERS FCU (LFCU) announced the establishment of the Gladys R. Duling Memorial Scholarship to honor Gladys’ 25 years of contributions to the credit union, and a presentation was made to Mitch and Ann Duling at the April 24, 2007, Board Meeting. The $1,000 scholarship will be awarded yearly to a LFCU member who is pursuing advanced education in a financial field. Selection of the scholarship recipient will be made by the LFCU Executive Committee, the LFCU President and Mitch and Ann Duling. The scholarship recipient will be announced in September 2007 and in June each year thereafter.

DEL-ONE (Delaware FCU) announces the following promotions. Amanda Lennon, the former Marketing Manager, has been promoted to Information Systems Manager. Amanda recently graduated with her Masters in Information Technology. Amy Durham, the former Marketing Coordinator, has been promoted to Marketing Manager. Tanya McDaniels, a former teller at the Blue Hen branch, has been promoted to Marketing Coordinator.

Theresa A. Hilinski, formerly of Eagle One FCU, has been awarded the National Youth Involvement Board (NYIB) scholarship for Credit Union Development Education (CUDE) training!

POSITION AVAILABLE

DPL FCU is looking for:
    1. Branch Manager/Loan Officer
    2. Part-time Teller-MSR
    3. Full-time Teller-MSR
Please fax resume and salary requirements to 302-369-7489. Attention: Joel Romaine. Or mail to DPL Federal Credit Union, Attn: Joel Romaine, PO Box 7739, Newark, DE 19714-7739.

EDUCATIONAL OPPORTUNITIES

May/June QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon
■ 6/05 Payday Lending
■ 6/12 Advance Branding
■ 6/14 Make Better Loan Decisions
■ 6/27 Hanging Onto Your Assets: Fraud and Embezzlement
Two-hour sessions run from 11 a.m.-1 p.m.
■ 5/31 Asset-Liability Management
■ 6/19 Why Members Sue CUs and Win
The fee for one-hour sessions is $99; the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Teller Fundamentals – Tuesday, May 22, from 9 a.m.-3:30 p.m. at the League office. This full-day session will focus on general teller skills and effective member relations. Topics: cash handling and maintaining an efficient teller station, as well as compliance issues such as the Bank Secrecy Act and the Expedited Funds Availability Act. Fee: $190. Space is still available.

North Law Firm “Servicemembers’ Civil Relief Act” Webinar – Thursday, May 31, from 1-3 p.m. EST at your credit union. Fee: $125. To enroll, go to www.culaw.webex.com.

Everything You Wanted to Know About NCUA but Were Afraid to Ask – Tuesday, June 5, from 9 a.m.-noon at the League office. Topics: how to prepare for the exam; the exam process; and the exit interview/joint conference. Fee: $50. Regis. deadline: May 22.

Bank Secrecy Act Training – Thursday, June 14, from 10 a.m.-noon. Fulfill your CU’s annual Bank Secrecy Act compliance training requirement by registering your staff. Instructor: John Kilduff of the Pennsylvania CU Association. Fee: $70. Regis. deadline: May 31.

Supervisory Committee & Internal Audit Conference – June 25-27 in Atlantic City, NJ. Don’t miss this opportunity to attend CUNA’s national training program in our area. Fee: $795 by May 23 or $895. Contact Bernadette Hines for a brochure, or register online at training.pcua.coop.

At Your Service

League Activities in April/May

COMMUNICATIONS/PUBLIC RELATIONS

League Annual Meeting Publicity. The League generated press releases regarding the League annual meeting. Thanks to Jim Chilcutt and Regina Mahaney, we were able to capture some great shots of the League annual meeting, some of which were featured in the April 20 issue of Together (hard copy and a few extra pictures online). In addition, Jim did a wonderful collage photo of the peach blossom print, Governor Minner, and Pat, superimposed on a picture of Credit Union House; copies were sent to the Governor, Credit Union House, and CUNA’s News Now. The Governor and CUNA also received a picture of Governor Minner and Pat with the Little Guy. It is featured on the state of Delaware’s website: http://governor.delaware.gov/photos/index.shtml and also in News Now.

League Works With Cooperative Extension Service on NEFE Launch. Alice Smith recently met with four members of the University of Delaware’s Cooperative Extension Service and Dr. Pat Barber, university professor of consumer finance education. The League has partnered in the past with this group to market the National Endowment for Financial Education's (NEFE) High School Financial Planning Program (HSFPP). CUNA is a partner in this organization to promote free financial literacy training materials for high school students. A revised version of the curriculum has just been launched, and the purpose of this meeting was to find ways to get this curriculum into the schools and community.

Presentation at Goldey Beacom. On May 3, Alice Smith made a presentation to an undergraduate finance class of 14 students at Goldey Beacom College for the second year in a row. The topic was credit unions and how they differ from banks.

Staff Visitations. Patrick Mahaney and Alice Smith both attended the ribbon cutting of Dover FCU’s newest branch in Smyrna on April 23. Dover FCU now has six branch locations, with another one planned in the near future in the Camden area, south of Dover.
Pat has also completed his goal of visiting all 34 Delaware credit unions. He has started the second round of meetings to gain a better understanding of the needs of Delaware credit unions.

GOVERNMENTAL AFFAIRS

CULAC Fundraising at League Annual Meeting. The GAC committee was able to raise $631 toward our 2007 CULAC goal during the League annual meeting. The breakdown: 1) $365 – golf driver raffle (clubs made by Dick Stoops and donated by Sussex County FCU); winners: Sam Minutola (ICI America FCU) and Bill Searles (Louviers FCU); 2) $241 – cosmetic basket raffle (items donated by Anthony Casarino, ICI America FCU, and won by John King of Eagle One FCU); and 3) $25 for pictures taken of CU members with the Little Guy. In addition there were proceeds from two 50/50s during the golf outing ($148) and dinner dance ($280) that will be turned into CULAC at a later date.

Update on CURIA Bill. Eighty-two lawmakers have added their names to the Credit Union Regulatory Improvements Act of 2007 (CURIA, H.R. 1537). The bill is based on 2006 legislation of the same name, but features the addition of two key provisions. One addresses field of membership rules to allow all credit unions, regardless of charter type, to serve those in underserved areas. The other would establish additional consumer safeguards in the event of a credit union conversion to another form of financial institution. The bill has also been revised to contain changes to the National Credit Union Administration's original prompt corrective action (PCA) reform plan, changes that the Credit Union National Association (CUNA) says were crafted specifically to address the Treasury Department's concerns that a credit union risk-based system must more closely resemble the current Federal Deposit Insurance Corporation capital standard for banks.

Little Guy. The “Little Guy” cut-out is CUNA’s new lobbying tool to use in supporting credit union legislation – and to vividly display the differences between credit unions and banks. The League GAC Fund purchased a 4-foot display model of the Little Guy, which was used at the annual meeting and can be borrowed by credit unions to get the message out to their members.
CUNA has also created a video as a means to cut through the muddle of information targeted at lawmakers and the members of their staffs. CUNA studied demographic information regarding Capitol Hill staffers to identify a new way to effectively deliver the credit union message. Please try using this link to watch the video. Link: http://www.cuna.org/initiatives/lg_video.htm.

LEAGUE SERVICES

Shared Branching. American Spirit FCU is signing up to be an issuer on the PaCUSC network. Eagle One FCU is currently an issuer and will soon be an outlet. Their Claymont branch will become the first Delaware shared branch location. PaCUSC exhibited at our convention a few weeks ago and generated several leads. For more information about this program and the one below, contact Jane Bailey.

Reloadable Pre-Paid Debit Cards. Delaware League Services just began offering the Visa reloadable pre-paid debit card program from the Illinois CU League. This program is a great economic fit for a small CU that has no share draft program. All sizes of credit unions can offer this product to their members who may not qualify for a regular debit card. First State Refinery FCU has signed up for this program to provide their members with electronic access to their funds.

EDUCATION AND TRAINING

Annual Meeting Education Day. George Hofheimer of the Filene Research Institute addressed 130 credit union staff and volunteers from 10 a.m. - noon on Friday, April 20, regarding “i³ …ideas, innovation and implementation.” His presentation was entertaining, educational and thought provoking. The afternoon topic tables included over 11 different subjects that encouraged networking with peers and discussion of various issues that are important to credit union operations.

March/April Education Sessions

Date	Title	Presenter	# Individuals	# CUs
	Education Sessions
03/07/07	CU Credit Card Program Assessment	PACU	9	5
03/13/07	Collection Council: Strategies to Assist in Pre and Post Judgments	Tom Monahan	9	11
03/22/07	Marketing Council –"Delaware Money School"	Ronni Cohen	15	8
03/27/07	Advanced Loan Officer Workshop	Rick Menton	11	9
03/27/07	What's Different in Board & Management Policies	Rick Menton	14	6
03/28/07	Robbery Awareness	Rick Menton	17	8
04/04/07	HR Council	Bob Nagle	14	9
04/05/07	Mortgage Council Housing Industry Update	GMAC	7	7
04/19/07	Discovery of Electronically Stored Information	Webinar/NorthLegal	unavail.	unavail.
04/20/07	League Annual Meeting Education Day	George Hofheimer	130	33
04/20/07	League Annual Meeting Education Day	Topic Tables	95	33
	Quickbites
03/20/07	Top 12 Collection Tips	Teleconference	2	4
03/29/07	Decedent Accounts	Teleconference	3	7
04/03/07	Check Fraud	Teleconference	1	1
	Mid-Atlantic Conference Calls
03/21/07	International Wires	Conference Call	6	3
03/22/07	International Wires	Conference Calls	4	1
04/05/07	Mid-Atlantic Basics of Foreclosures	Conference Calls	2	1
04/24/07	Mid-Atlantic ALM Issues w Flat/Inverted Curve	Conference Call	5	3

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).