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Editor's notes:
POLICY TITLE: Carnegie Mellon University Federal Credit Union
DATE OF ISSUANCE: This document was most recently revised in January 1998.
ACCOUNTABLE DEPARTMENT/UNIT: Credit Union. Questions and requests for current interest rates should be directed to the Credit Union Office, x82905, or the SEI branch office, x87183.
ABSTRACT: Contains operating policies and procedures for Carnegie Mellon's Federal Credit Union.
We are a non-profit, member-owned, financial institution that has been serving employees of Carnegie Mellon University, affiliated groups and their families for over 60 years. Because we are non-profit and member-owned, unlike a bank, money made in excess of expenses is returned to the membership through savings dividends and low loan rates.
The credit union is federally chartered, regulated and insured by the National Credit Union Administration (NCUA), an agency of the U.S. government. Member accounts are insured to an aggregate of $100,000. Member Individual Retirement Accounts (IRAs) are insured separately to an additional $100,000. NCUA is one of the strongest of the federal insurance funds and issues strict operating guidelines for the credit unions it regulates.
Board of Directors - Credit union members who are elected and serve as volunteers. The board sets the operational objectives and establishes policies that guide the staff in achieving those objectives.
Professional staff - Responsible for managing daily operations.
Credit Union Members.
Membership is open to regular employees of Carnegie Mellon University, assigned employees of Central Properties Services, Marriott Corporation, and Structural Steel Painting Council (SSPC). Immediate family and pensioners of the above organizations are also eligible for membership.
Once you become a member, you are always a member, provided you maintain an active, open account. This means you can carry the benefits of credit union membership with you through employment changes or retirement.
A completed signature card and $6.00 will establish membership. A $5.00 deposit is made to your share account and there is a one-time membership fee of $1.00.
Individual Account - Owned strictly by you. Information or funds in the account are not available to anyone else.
Joint Account - Account is established in two or more names. Each joint owner can make deposits, withdrawals, inquiries or close the account. However, joint owners who are not members themselves have no membership privileges and are not eligible for loans as a primary borrower.
Campus: Building D, Room 250 (former Bureau of Mines Building), (412) 268-2905.
| Monday: Tuesday: Wednesday: Thursday: Friday: |
8:00 a.m.-2:00 p.m. 9:00 a.m.-2:00 p.m. 9:00 a.m.-4:00 p.m. CLOSED (SEI only) 9:00 a.m.-2:00 p.m. |
Software Engineering Institute (SEI):
| Room 4115 (4th floor conference room)
(412) 268-7183 Thursday 9:00 a.m.-12:00 noon |
Any of the savings accounts below can be tailored to suit your circumstances. Deposits may be made by mail, campus mail, in person at the office or through convenient payroll deduction. Please make all cash deposits in person only.
Normally, approved loan requests received on Monday @ 2:00 p.m. have funds disbursed on Wednesday. Approved loan requests received by Wednesday @ 2:00 p.m. have funds disbursed on Friday. Upon request, other arrangments can be made to suit the borrowers' needs. Loan applications are available at the credit union office and can be submitted in person, by fax (8-1861) or by mail.
Loan applicants must be credit union members and have proof of current, uninterrupted income for at least six months to be eligible for all loans except Share Secured or Emergency Loans. This is usually demonstrated by being employed with the same employer for at least six months or working in the same field with a previous employer for a minimum of two years.
The aggregate amount of indebtedness to the credit union for any member is $40,000. The credit union does not grant business loans on security or collateral used primarily for commercial purposes.
Loan payments may be conveniently made through payroll deduction on a bi-weekly or monthly basis, depending on the borrower's payroll schedule. Upon request, loan repayment schedules can be adjusted to suit a 9-, 10- or 11-month payroll schedule.
Additional payments may be made to all credit union loans, at any time, without penalty to the borrower.
A closed-end, unsecured loan with a limit of 1-and-1/2 months' gross income (based on 1/12 of annual income) for up to 30 months. Personal loans may be refinanced a maximum of two times before being paid in full. Six monthly payments or the dollar equivalent must be repaid on the loan before it is eligible for refinancing.
A closed-end, unsecured loan to be used for the purchase of computer equipment from the CMU Computer Store. An invoice from the CMU Computer Store must be provided before any funds are disbursed. Computer Loans have the same amount and term restrictions as the Personal Loans. Refinancing is available for the purchase of addition computer equipment.
A closed-end, unsecured, short-term loan for emergency situations. These loans are not eligible for refinancing. New employees who have not met their six-month eligibility requirement may also be considered. Applicants must not be eligible for the credit union's Personal Loan in order to be given consideration. A processing fee will be assessed.
| Amt. Financed: | Max. Term: | Processing Fee: |
|---|---|---|
| to $500 | 3 months | $20 |
| $501 - $1,000 | 6 months | $40 |
A closed-end loan, secured by the vehicle title, intended for the purchase of new automobiles, vans and trucks no greater than two tons. These vehicles cannot have been previously registered or have mileage that exceeds 7500 miles. Prior-year vehicles that meet the above criteria may be refinanced as new (new car interest rate and term) until April 15th. Generally, the credit union will finance up to 90% of the purchase price less tax. 100% financing is available to qualified applicants upon request.
| Amt. Financed: | Max. Term: |
|---|---|
| to $9,999 | 48 months |
| $10,000 - $40,000 | 60 months |
Apply for a pre-approved new vehicle loan and take care of the financing before you start shopping for a car. Pre-approvals are good for 30 days and there is no obligation until you choose a vehicle and sign the final promissory note.
A closed-end loan, secured by the vehicle title, intended for the purchase of automobiles, vans and trucks that do not exceed two tons and have been previously titled. The credit union will finance the purchase price or up to 90% of the retail value as listed in the NADA Official Used Car Guide, whichever is less. The credit union will not finance any vehicle that is more than 7 model years old. A letter of intent to sell, available at the credit union office, is required for purchases from a private party.
| Model Year: | Amt. Financed: | Max. Term: |
|---|---|---|
| 1997-1998 | $2,500 - 5,000 $5,001 - 7,499 $7,500 - 9,999 $10,000 - 40,000 | 30 months 36 months 48 months 60 months |
| 1993-1996 | $2,500 - 5,000 $5,001 - 7,499 $7,500 -14,999 $15,000 - 40,000 | 30 months 36 months 48 months 60 months |
| 1991-1992 | $2,500 - $5,000 $5,000 - UP | 30 months 36 months |
A loan that is secured by a lien on the property and is close-ended. The credit union will lend up to 95% of the net equity in the home, with a maximum of $30,000. The minimum loan amount is $7,500.
| Appraised Value X 95% | = $ |
| - 1st Mortgage Balance | = $ |
| Net Equity | = $ |
Upon approval, a property report, appraisal, flood certification and title search will be ordered. After the net equity is confirmed, the necessary mortgage and loan documents will be completed at closing. The closing costs are the applicant's responsibility if the financed amount is less than $15,000; however, the closing costs may be rolled into the loan, provided the net equity guidelines are met. If the financed amount is between $15,000 and $20,000, the applicant is responsible for 50% of the closing costs, which may be rolled into the loan. For loans exceeding $20,000, the credit union will absorb all closing costs. As per federal regulation, there is a three-day recission period from the closing date to the disbursement of the loan funds.
A $250 deposit is required with the application to cover closing costs. Upon disbursal of loan proceeds, this deposit will either be applied to the final closing costs or refunded, depending on the financed amount.
The borrower must provide proof of the appropriate hazard insurance, including flood hazard insurance if property located in a designated flood zone, that covers all existing loans, as well as the new loan amount.
| Amount Financed: | Maximum Term: |
|---|---|
| 7,5000 - $10,000 | 60 months |
| $10,001 - $18,000 | 84 months |
| $18,001 - $30,000 | 120 months |
A closed-end loan secured by shares (savings) held in the credit union. The applicant can borrow up to 100% of the amount held in the credit union share account. The shares are frozen in the credit union for the term of the loan.
| Amount Financed: | Max. Term: |
|---|---|
| To $9,999 | 48 months |
| $10,000 - $40,000 | 60 months |
A closed-end loan secured by stock. The credit union will lend up to 80% of the current quoted market value of publicly traded stock on the New York Stock Exchange or the AMEX. The market value is based on the previous day's closing price as listed from a reputable source.
| Amount Financed: | Max. Term: |
|---|---|
| To $9,999 | 48 months |
| $10,000 - $40,000 | 60 months |
A closed-end loan secured by the vehicle title, intended for the purchase of recreational vehicles (RVs). The credit union will lend up to 90% of the purchase price on new RVs. On used RVs, the credit union will lend the purchase price or up to 90% of the wholesale value as listed in the NADA Used Recreational Vehicle Guide, whichever is less. A letter of intent to sell, available at the credit union office, is required for purchases from a private party.
| Amount Financed: | Max. Term: |
|---|---|
| To $9,999 | 48 months |
| $10,000 - $40,000 | 60 months |
A closed-end loan secured by the vehicle title, intended for the purchase of motorcycles. The credit union will lend up to 80% of the purchase price on new motorcycles. On used motorcycles, the credit union will finance the purchase price or up to 90% of the wholesale value as listed in the NADA Used Motorcycle Guide, whichever is less. A letter of intent to sell, available at the credit union office, is required for all purchases from a private party.
| Amount Financed: | Max. Term: |
|---|---|
| To $9,999 | 48 months |
| $10,000 - $40,000 | 60 months |
Citicorp Travelers Checks are available at the credit union office at no charge to members. Travelers checks may be purchased by transfer from your credit union account, Carnegie Mellon University check, cash or cash equivalent.
Thomas Cook Travelers Checks are available in most foreign currencies. Call the credit union office to check on a particular currency. Foreign travelers checks or foreign cash may be purchased via transfer from your credit union account, Carnegie Mellon University check, cash or cash equivalent. Exchange rate determined at time of purchase or redemption.
Fees:
Receive funds sent from your credit union account at any of the 24,000 worldwide Western Union Agent locations. A maximum of $10,000 may be wired from your account per transaction.
| Domestic Wire Amount: | Fee: |
|---|---|
| to $500 $501 - 1,000 $1,001 - 10,000 | $15 $20 $25 |
| International Wire Amount: | Fee: |
| to $500 $501 - 10,000 | $25 $15 + 2% of principle |
Free to credit union members.