Volume 30, Number 8 May
15, 2010
Volume 30, Number 8 May
15, 2010
HEADLINE NEWS
Cheney Named
New CUNA CEO
Bill
Cheney will take the reins as CUNA president/CEO July 5, succeeding Dan Mica.
Cheney, 49, is president/CEO of the California/Nevada Credit Union Leagues.
“After an exhaustive search, in which nearly 100 highly qualified
candidates were considered, the CUNA Board has unanimously accepted and
certified the executive search committee’s recommendation of Bill as the next
chief executive of our association,” says Kris Mecham,
CUNA Board chairman. “Bill’s long service to credit unions, as both a financial
institution executive and association leader, ensure our association will not
miss a beat in advocating for credit unions.”
“I am ready for the challenge and excited about the opportunity,” Cheney
says. “Dan Mica has built a great team and I look forward to leading it in
continued pursuit of critical credit union goals.”
Harriet May, CUNA vice chairman and leader of the executive search
committee, said Cheney’s background in credit unions was a key factor in the
search group’s recommendation of his hiring.
“While we considered candidates from both inside the credit union
movement and outside of it,” she says, “we ultimately recommended Bill for the
job because of his peerless and extensive background as a credit union
professional and as a professional advocate for credit unions. He knows
us—and we know him.”
Current CUNA CEO Dan Mica applauded the board’s selection of Cheney as
CUNA’s next leader. “He has the resume and the real experience to do the job
brilliantly,” Mica says. “His many visits to Capitol Hill and the relationships
he has built, his tireless work with the regulator, his bonds with his
California and Nevada members, his knowledge of credit unions and of business
in general makes him the ideal candidate. I anticipate an absolutely seamless
transition from my tenure to that of the new leader of the credit union
movement.”
Mica adds that the transition is already underway, and that he will be
working with Cheney until the new CEO’s official start date, which will be July
5. Mica will remain available to Cheney for counsel through the remainder of
the year.
Cheney began his credit union career in 1987 with Security Service
Federal Credit Union in San Antonio. In 1997, he was named president/CEO of
Xerox Federal Credit Union (now called Xceed Federal
Credit Union) in El Segundo, California.
In 2006, the California/Nevada Credit Union Leagues tapped Cheney as
their president/CEO. While overseeing the combined organizations’ operations,
Cheney is credited with building the leagues’ affiliation while improving their
operational efficiencies.
Mid-Atlantic
Corp Annual Meeting
Mid-Atlantic
Corporate FCU will hold its 2010 annual meeting on Friday, June 18, at the Sheraton
Harrisburg Hershey Hotel, beginning with a served breakfast at 8:00 a.m. The
annual business meeting will follow at 9:00 a.m.
A
charity golf tournament and luncheon will be held on Thursday, June 17, at
Dauphin Highlands Golf Course. A reception and guided tour of the Corporate office will be offered on Thursday evening.
To
register for the annual meeting and/or the charity golf tournament, visit www.midatlanticcorp.org,
and click on the Annual Meeting/Golf Tournament link on the home page.
COMPLIANCE RECAP
Internet
Gambling Rules Take Effect June 1
CUNA has confirmed with Federal Reserve Board staff that the
Unlawful Internet Gambling Enforcement Act (UIGEA) regulations are on
track for mandatory compliance on June 1. The Fed and the U.S. Treasury pushed
back the compliance date from Dec. 1, 2009, to June 1, 2010, just days before
credit unions were originally scheduled to comply with the new requirements.
The rules require credit unions and other financial
institutions to establish and implement policies and procedures to identify and
block restricted Internet gambling transactions or rely on those procedures
established by the payments system. Participants in card systems and money
transfer business operators are covered by the rule. Many participants in ACH
systems, check collection, and wire transfer systems are exempt from the rule.
However, the exemptions are complicated and contain a number of exceptions. Most
credit unions are impacted by the rules to some extent.
CU PolicyPro Can Help Prepare For June
1 Internet Gambling Rule
Internet gambling rules will become effective on June 1. Credit unions
must have policies in place to know accountholders and follow procedures
established by card processors and payment systems. The following policies in CU PolicyPro contain information on Internet Gambling:
2211 Internet Gambling (Business Accounts)
2290 Internet Gambling (Wire Transfers)
2610 Internet Gambling (Automated Clearing House Operations)
2611 Internet Gambling (ACH Management)
Information is also available on CUNA’s
e-Guide under the “Internet
Gambling” topic (password protected): http://cuna.org/compliance/member/eguide/eguide_internetgambling.html.
Copying Military ID?
Question: Our credit union has
often accepted military ID (both active and retired) as proper identification
for our members, and we make a copy as proof that we followed our Customer
Identification Program (CIP) procedures. Recently we were challenged that we
may not copy military ID. Are you aware of this restriction and/or can you
cite a regulation that either permits or prevents us from copying this type of
ID?
Answer: According
to “Identification (ID) Cards for Members of the Uniformed Services, Their
Dependents, and Other Eligible Individuals” (the Department of Defense
Instruction Number 1000.13, issued on December 5, 1997), “Photocopying of the
DD Forms 2, DD Form 1173, or DD Form 1173-1 to facilitate medical care
processing, check cashing, or administering other military-related benefits to
eligible beneficiaries are examples of authorized photocopying.”
When it comes to maintaining a photocopy of the ID, a credit
union must make a business decision as to whether or not photocopying a
military ID for their Customer Identification Program (CIP) is a permissible
practice. If unsure, a credit union could simply consider changing its policy to
state that it will only collect the information on a military ID, but will not
photocopy it. Photocopying identification is not a requirement of the
CIP—the CIP only requires documentation of identification used. If your
credit union prefers to photocopy the ID, it would be prudent to contact your
credit union’s legal counsel for their legal opinion. [Source: InfoSight newsletter]
Mid-Atlantic Corporate’s
2009 Audited Financials
Mid-Atlantic Corporate’s 2009 audited financials have been posted to its
website. All members will receive a hard copy in the mail in the next few
weeks. To view the full financials, go to www.midatlanticcorp.org and select the link under “Latest News” on the right-hand side of
the screen. The financials can also be viewed on the “Documents” page in Zephyr® under the “Financials” header.
CU SYSTEM NEWS
Treasury
Goes Green, Saves Green
The U.S. Department of the Treasury has announced a broad
new initiative to dramatically increase the number of electronic transactions
that involve Treasury and millions of citizens and businesses, a move that is
expected to save more than $400 million and 12 million pounds of paper in the
first five years alone.
Starting immediately, the Treasury will begin implementing a
three-pronged initiative to dramatically reduce the number of transactions that
are conducted on paper by moving them to electronic systems. Aside from
the large cost savings, electronic transactions provide safety, convenience,
and control for payment recipients, taxpayers, and savings bond holders.
·
Individuals receiving Social Security,
Supplemental Security Income, Veterans, Railroad Retirement, and Office of
Personnel Management benefits will be required to receive payments electronically.
Individuals will be able to receive benefits either through direct deposit into
a bank account or Treasury’s Direct Express debit card. The requirement
will apply to new enrollees beginning on March 1, 2011, and to existing check
recipients beginning on March 1, 2013.
·
Businesses currently permitted to use
paper Federal Tax Deposit coupons will have to make those deposits
electronically beginning in 2011, with a few exceptions, primarily businesses
with $2,500 or less in quarterly tax liabilities that pay when filing their
returns.
·
The option to purchase paper savings
bonds through payroll deductions for federal employees will be eliminated on
September 30, 2010, and for the private sector by January 1,
2011. Individuals will still be able to purchase paper savings bonds at
financial institutions for themselves and as gifts.
Quarters to Recognize National Parks; Boy Scouts
Honored With Silver Dollar
The U.S. Mint has unveiled
designs for the first five quarters in the America the Beautiful Quarters
Program. In a ceremony at the Newseum in Washington,
D.C., mint officials announced that the new series will honor 56 national parks
and other sites in all 50 states, the District of Columbia, and the U.S.
territories.
The first coin, featuring Hot Springs National Park in
Arkansas, became available in April. Five quarters will be issued yearly
through 2021 in the order in which the featured attraction was established as a
national park or national site.
The U.S. Mint is also accepting
orders for the 2010 Boy Scouts of America Centennial Silver Dollar. The Silver
Dollar coin commemorates the centennial of the Boy Scouts of America. The
mintage limit for the 2010 Boy Scouts of America Centennial Silver Dollar is
set at 350,000 coins, struck in 90% silver. Surcharges from sales of the
commemorative coin are authorized to be paid to the National Boy Scouts of
America Foundation.
The Boy Scouts of America Centennial Silver Dollar may be
ordered at the United States Mint website, http://www.usmint.gov/catalog, or at
the toll-free number, 1-800-USA-MINT (872-6468).
New
Design for $100 Note Unveiled
Officials from the U.S.
Department of the Treasury, the Board of Governors of the Federal Reserve
System, and the United States Secret Service have unveiled the new design for
the $100 note. Complete with advanced technology to combat counterfeiting, the
new design for the $100 note retains the traditional look of U.S. currency.
The new $100 note will be issued on February 10, 2011;
however, older designs in circulation will remain legal tender.
There are a number of security features in the redesigned
$100 note, including two new features: the 3-D Security Ribbon and the Bell in
the Inkwell. These security features are easy for consumers and merchants to
use to authenticate their currency. For a more detailed description of the
redesigned $100 note and its features, visit www.newmoney.gov. Free training materials
for cash handlers are also available.
DELAWARE NOTES
DEL-ONE (Delaware FCU) has
taken steps to provide a secure, user-friendly solution to the emerging demand
for managing finances around the clock. The new free mobile banking service
makes performing financial transactions even more convenient. It allows members
the flexibility to use internet-enabled cell phones or PDAs
when they’re on the go to check account balances, view account history,
transfer funds, manage online bill payments and locate Del-One branches and
ATMs.
In efforts to clean America’s highways, 18 DOVER FCU employees and family members recently gathered for the semi-annual
“Walker Road Clean-Up,” part of the credit union’s Adopt A Highway sponsorship.
Twice per year, the credit union team picks up trash and other debris along
Walker Road to help beautify the local community.
“We have a long history of helping in the Dover community, and our
annual Walker Road clean-up demonstrates the heart and spirit of our team
members,” commented David Clendaniel, President/CEO of Dover Federal. “The
number of employees and their family members that turned out to pick up debris
along a 1-mile stretch of road shows their willingness to give back to their
community.” Dover Federal has sponsored the Adopt A Highway on Walker Road
since 2001.
EAGLE ONE
FCU has begun selling T-shirts commemorating the credit union’s 75th
Anniversary. The T-shirts, priced
at $10 each, feature Eagle One’s 75th anniversary logo on front and
back and also have “Member” printed on the front under the logo. Proceeds from
the sale will be donated to the Postal Employees Relief Fund (PERF), which
helps active and retired postal employees who incur a significant loss in
property damage as a result of a major natural disaster or fire. Eagle One was
founded as Philadelphia District Railway Postal Clerks FCU on July 26, 1935,
and remains loyal to its roots as a postal credit union. The credit union has
two offices located in the two largest mail processing facilities in
Philadelphia and a branch in Claymont.
EDUCATIONAL
OPPORTUNITIES
May/June QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
§
5/27
CU Alternatives to Predatory Car Loans
§
6/02
Regulation E
§
6/16
Cell Phones: Our Future Wallets
§
6/22
Professionalism in the Workplace
§
6/30
Key Financial Ratios Everyone Including the Board Should Know
The fee for the one-hour sessions is $99. The deadline to register with
Bernadette Hines: one week before the session.
May/June Webcasts
§
5/19
Handling Return Items: Checks/Imaged/ACH
§
5/20 Reg CC: New Funds Availability Rules
§
5/26
Repossession, Notice, & Sale of Collateral
§
6/02
Understanding the Changes to 5300 Call Reports
§
6/09
Resolving the New Account Dilemma: Compliance/Security vs. Sales &
Service
§
6/10
Remote Deposit & Risk: New FFIEC Exam Procedures
§
6/16
Safe Deposit Fundamentals
§
6/23
Preventing Losses to the Frontline & Call Centers
§
6/30
Handling the Right of Set Off: What You Need to Know
§
Reg CC Check
Holds Webinar – CD only (available until August 31)
The
webcasts are 90 minutes (3-4:30 p.m.). The $189 registration fee is for EITHER the “live”
webcast or the recorded CD-ROM of the complete session. When registering,
you must indicate your preference. The $219 registration fee covers both
the “live session” and the CD-ROM recording.
May/June Live Training/Meetings
Cards Council: “Card Marketing & the CARD Act” –
Wednesday, May 26, from 10 a.m.-noon. Free to Cards/Marketing Council members.
Non-council members: $100. Regis.
deadline: 5/19.
Collection Council: “Inside Look at the Auto Auction” –
Tuesday, June 8. Field trip to the Bel Air Auto Auction in Bel Air, Maryland. 9
a.m.-1 p.m. Lunch provided. Lender reposssessed vehicles are offered
weekly at the auction, and participants will see the entire live process. Free to
council members; all others $100. Regis. deadline: 6/1. Participants may drive directly to the
Auto Auction and arrive by 8:45 a.m. Bernadette Hines will
coordinate volunteers to drive and those in need of a ride. The carpool will
leave from the League parking lot by 7:15 a.m.
Robbery Prevention Training – This session is designed for mangement and
front-line staff; board members and volunteers are encouraged to attend. Two
dates and two locations:
1)
Tuesday, June 15 from 5:30-7 p.m. at the League
office
2)
Wednesday, June 16 from 5-6:30 p.m. at Delaware
State Police FCU in Georgetown
Fee: $55 per person per session. A light meal will be served. Regis. Deadline: 6/8.
LEAGUE SERVICES
League
Annual Meeting. Delaware had 190 registered
individuals from 24 credit unions (including one from a DC credit union). In
2009 we had 151 individuals from 23 credit unions. Twenty-six vendors
participated in the trade show – seven of those were new. Forty
individuals from 16 credit unions attended the strategic planning session at
the convention.
Annual
Meeting Fundraising Events. A special auction and the
raffle of two golf drivers earned $860 for the Credit Union Legislative Action
Council (CULAC) to help with political advocacy. Delaware has currently
contributed over $2000 in our quest to reach the state’s 2010 CULAC goal of
$5,537.93.
In addition at the annual meeting, proceeds from special events at the
Thursday afternoon golf outing brought in $263 for the League scholarship
program. A special “Putt a Nut” contest netted Children’s Miracle Network (CMN)
a total of $480 to continue the agency’s good work. Half of the proceeds came
from those who participated in the game, and the other half was matched by the
League.
Delaware
Credit Unions Sign-up for League Programs.
§ Sussex County FCU has entered
into an agreement with Deluxe (who offers a cooperative share draft printing
arrangement through the league). They join current clients Dover FCU, Eagle One
FCU, and New Castle County School Employees FCU.
§
DPL’s board has approved shared branching through
our PaCUSC partner. We will soon have six Delaware
credit unions on the network: American Spirit, Chestnut Run, Delaware State
Police, Delaware First, DPL, Sussex County, and Eagle One, which has a branch
in our state.
New IIA Banner With Trademark Logo
The Invest in America program has
been trademarked and has a new logo. The new logo contains the trademark
symbol, as well as the tag line, “CU Member Rewards Program,” to help
better define what IIA means to your members. Participating credit unions
should update their websites to add the banners with the new logo. If installed
properly, the logo should be automatically updated.
The new logo, as well as marketing materials and banners are
available at:
http://www.lovemycreditunion.org/Overall_Invest_in_America_Marketing_Materials_476.html.
Other happenings in the Invest in America program:
§ Credit unions earned over $325,000 in 1st quarter of 2010;
§ AutoNation joins Invest in America (used vehicles);
§ Shop America On-line Mall is coming soon; and
§ Sprint offers a free car charger to new customers and a money-back
guarantee.
COMMUNICATIONS/PUBLIC RELATIONS
Delaware
League News and Risk Alerts. In
April, the League emailed 16 news updates. The majority dealt with compliance
matters, NCUA news, CUNA Mutual information, and positive press for credit
unions. There were five risk alerts which included a fraudulent check notice,
unauthorized business account risk, phishing of NCUA’s
website, identity theft using information on old copy machines, and fraud
committed through the shared branching network.
League
Travel. Pat and Bernadette visited with
Luba Reilly, the new manager of Edge Moor Dupont
EFCU. Pat greeted Wayne Stultz as the interim CEO of
Delaware FCU (Del-One) and offered Wayne concrete suggestions of how to proceed
in a search for the new CEO. Jane Bailey recently met with Nancy Gregory of
Preferred Financial FCU. Pat attended Dover FCU’s
annual meeting, and he and Alice made presentations at Del-One’s annual
meeting.
COMPLIANCE
InfoSight/Policy Pro Compliance Update. The League continues to send out weekly InfoSight newsletters and monthly CU PolicyPro
operational notes. In April, InfoSight recorded 78
hits from Delaware. Since January, there have been over 1300 visits to the site
(some of these from League staff).
GOVERNMENTAL AFFAIRS
Interchange
Fee Legislation. Over the last few weeks, CUNA has made
significant progress on the regulatory restructuring bill, S.
3217. However, there are currently two amendments, #3771 and
#3769, which change the card payment system and have drastic
implications for credit unions and credit union members across the
country. CUNA has been working behind the scenes to keep this from a vote
and has asked that credit unions contact our members in Congress regarding this
issue. Thanks to the following individuals and credit unions that have reported
their advocacy to the league: Betsy Cole of Delaware Alliance FCU, John Watson
of Seaford FCU, David Clendaniel of Dover FCU; Allen Riley of Sussex County
FCU; and Jane Bailey and Pat Mahaney for the league. This is a key fight
for credit unions, and we appreciate your help.
EDUCATION
Annual
Meeting Education Day. Keynoter Tom Glatt
addressed over 100 credit union staff and volunteers with a presentation
entitled “It Ain’t Ever Gonna
Be 1960 Again!”on Friday
morning. In the afternoon, five breakout sessions were repeated twice:
During the business meeting on Saturday, Bernadette Hines announced the
following education awards earned in 2009:
April Education Sessions
|
Date |
Title |
|
# Individuals |
#
CUs |
|
04/08/10 |
Remember the Golden Rule Conf Call |
Mid-Atlantic Conf Call |
2 |
2 |
|
04/14/10 |
Mortgage Council: New Escrow Requirements |
Sandy Cline |
12 |
8 |
|
04/15/10 |
Hard Core Delinquent Accounts |
Mid-Atlantic Conf Call |
4 |
3 |
|
04/20/10 |
Financial Management Council |
Ken Welch, Larson Allen LLP |
15 |
9 |
|
04/29/10 |
52st DCUL Annual
Meeting Education Day |
|
|
|
|
|
"It Ain't Never Gonna Be 1960 Again" |
Tom Glatt |
110 |
22 |
|
|
"Spam, Shams, & Other Scams" |
Chetta
Hebron-Byrd |
42 |
|
|
|
"Trends in Financial Security: What Are My
Options" |
Chris Mackey |
20 |
|
|
|
"The New Profitability Model" |
Tom Glatt |
55 |
|
|
|
"NCUA's Top Hot
Issues" |
Herb Yolles |
39 |
|
|
|
"Negotiating Letters of Understanding &
Agreement” |
Chris Pippett |
16 |
|
|
|
DCUL Strategic Planning Meeting Update |
|
46 |
15 |
|
4/21/10 |
Quickbites: Telephone Etiquette |
|
2 |
8 |
TOGETHER is published on the 15th and 30th of each
month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle,
DE 19720. 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
Editor Alice Smith (alice@dcul.org). TOGETHER is published on the 15th and 30th of each
month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle,
DE 19720. 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
Editor Alice Smith (alice@dcul.org).