Wednesday | 09:00 AM - 04:00 PM |
Thursday | 09:00 AM - 04:00 PM |
Friday | 09:00 AM - 04:30 PM |
Saturday | Closed |
Sunday | Closed |
Monday | 09:00 AM - 04:00 PM |
Tuesday | 09:00 AM - 04:00 PM |
Here are the topics for our most frequently asked questions with answers:
Q: How are Dividends Calculated?
A: Dividends are calculated using the lowest monthly balances over a 12-month period (August to July) and applying the dividend rate, then, adding all 12 months together
The formula to calculate the dividend is:
Please see examples below:
1. Member A is not a consistent saver, as amounts are withdrawn in some months:
2. Member B is also not a consistent saver, and placed a large deposit in his/her shares four months before month -end:
3. Member C has been saving consistently the amount that he/she can afford since joining the Credit Union and each month the monthly earnings are increasing:
SUGGESTION:
Q: What is a Permanent Share?
A: It represents a member’s ownership of, or member’s equity in the Credit Union. This amount cannot be withdrawn while the person remains a member.
Q: Why is it necessary for the Credit Union to implement Permanent Shares?
A1: This gives the Credit Union another option for raising capital. It is also in keeping with the International Financial Reporting (Accounting) Standards that require equity to be treated in a certain way.
A2: Since voluntary shares are not considered capital, permanent shares represent members’ equity in the Credit Union.
Q: How is a Permanent Share different from voluntary shares?
A: The money in voluntary shares can be withdrawn, subject to a notice period if necessary. Permanent shares cannot be withdrawn; they can only be transferred when the member decides to give up membership.
Q: How does a member benefit from having Permanent Shares?
A: It represents your part ownership or equity in the Credit Union and is used for the growth and development of your Credit Union.
Q: Am I not considered an owner of the Credit Union if I only have voluntary shares? Credit Union is a Co-operative so each member is an owner.
A: The Credit Union Rules require members to both permanent and voluntary shares to qualify as a member.
Q: How does the Credit Union benefit from permanent shares?
A: Permanent shares increase the capital of the Credit Union and allows it to undertake expansion and enhancement of services to the members.
Q: Will Permanent Shares ever replace current Voluntary Shares?
A: No. The Credit Union Rules require two types of shares, both Permanent and Voluntary.
Q: Will I get dividends on my Permanent Shares?
A: Dividends may be paid on permanent shares if recommended by the Board of Directors and approved by members in an annual meeting.
Q: If dividends will be given to Permanent Shares, will it be more than what I can earn from the voluntary shares?
A: Yes, more details will be provided to all members when this is proposed.
Q: Who and what will determine how much Permanent Shares members will need to have?
A: These decisions will be made by members in general meetings on the recommendation of the Board.
Q: Is there a maximum amount that I can invest in Permanent Shares?
A: The current maximum requirement at this time is $100.
Q: Will Permanent Shares give more control to one member over another member?
A: No. All members will have the same number of Permanent Shares and in keeping with the principles of cooperatives, each member has one vote.
Q: Can I use my Permanent Shares as collateral?
A: Permanent shares are not intended to be used as collateral. Members have the option of using their voluntary shares to provide collateral for their loans.
Q: Can Permanent Shares ever be withdrawn?
A: No. In case of death or resignation as a member, the Credit Union may buy back the shares using a special fund called the share transfer fund.
For more information about our development, please click here.
Q: Where is the Development located?
A: The Development is located between Smith Road and Elroy Arch Rd.
Q: What is the name of the Development?
A: The name of the residential development is Verdant Terrace; It was named in a member competition.
Q: How many residential units will be built for sale?
A: The residential complex will include 62 apartment units
Q: What is the square footage of each residential unit?
A: Each unit will consist of 1,100 square feet.
Q: How many bathrooms and bedrooms will be in each unit?
A: Each unit will have 2 bedrooms and 21/2 bathrooms.
Q: Are there any one-bedroom units?
A: No, just 2-bedroom units.
Q: What else will be constructed on the development site?
A: a 3-story commercial purpose-built facility with a proposal for two floors to be leased and one floor to be purchased.
Q: When will the construction of the residential units begin?
A: In the first quarter of 2023.
Q: How will the Credit Union Fund the costs of construction?
A: The development will be funded from excess cash not loaned to members.
Q: Will the units be sold pre-construction, and when will pre-sales begin?
A: Based on ever-changing construction costs, a date to start pre-sales has not yet been set; however, we keep all our members informed as decisions are taken.
Q: Who will qualify to purchase these units, members, non-members, or both?
A: We have had much interest being expressed by members, and as such, we hope that all units will be purchased by members; the priority will be to sell to qualified borrowers who are members.
Q: If more members qualify than units for sale, what criteria will determine who the unit will be sold to?
A: We will employ a fair system that will give preference to qualified members who are first-time homeowners, then to qualified members based on a credit risk score.
Q: Why and how did this Plan come about?
A: After a 5-year period of rapid growth and development, our Credit Union wanted to take a comprehensive assessment of our current environment and look beyond to determine the direction for the next three years. We also wanted to give our members the opportunity to participate in the direction we should take in the next 3 years as we enhance our service and continue to provide a return to our members.
Q: Who was involved in coming up with the Plan?
A: Our Board of Directors, Consultants, Management and staff, Member Steering Committee (11 members) , and the 1,692 members who responded to the surveys.
Q: What are the strategic goals identified for 2023-2025?
A: The strategic goals are:
Q: How will members be updated on the progress of this Plan?
A: Members will be updated at each AGM on our progress in implementing the Plan.
Q: When will the full plan be available to members?
A: The Plan will be made available to members on requests; however, we also intend to provide a streamlined version of the plan on our website by 31 January 2023.
To read our existing Credit Union Rules and the 2022 Revision, please click here.
Q: When were the Rules last updated?
A: The Credit Union Rules were:
Last, comprehensively reviewed in 2012; however, some amendments were approved by members at the AGM in 2018, 2019, and 2020.
Q: Why did we update the Rules in 2022?
A: To strengthen the governance framework:
Q: Who was involved in updating the Rules?
A: The Board of Directors, Committee Members, multiple focus groups from members, staff, and a consultant.
Q: Are the revised Rules in effect now?
A: No, they will be formatted, policies to support the amendments will be completed, and then the Rules will be forwarded to the Registrar for the final approval.
Q: When will they come into effect?
A: We expect the revised Rules to come into effect in the first quarter of 2023.
Q: When the Rules come into effect, will existing members be given time to increase their permanent share investment from $25 to $100?
A: Yes, members will be given up to six months.
Q: Where do I go to get access to service from my Credit Union?
A: The Credit Union provides service through various delivery channels:
Q: Why do I have to get my identification documents certified?
Where the Credit Union has not had sight of any original documents being provided for its know your client (KYC) procedures, copies of such documents can only be accepted where it has been certified in accordance with the CIMA Guidance Notes. The Guidance Notes require that a certifier must be a suitable person (eg a lawyer, accountant, director or manager of a regulated entity, a notary public, a member of the judiciary or a senior civil servant). This certifier should sign the certified document and clearly state his/her name and the capacity they are signing in and include their contact address and phone number.
Q: Why must I complete a Source of Funds form for a cheque from a local bank?
A: The Credit Union is legally required to know its customers, including identifying and verifying the source of funds of its members. This includes when cheques/drafts drawn on another financial institution are being deposited by a member. Although the relevant financial institution has the equivalent obligation to know its customers, the Credit Union is not able to rely on the due diligence measures of that institution and is legally required to conduct its own due diligence checks.
Q: Do I have to have both IDs current?
At the time of account opening, you are required to provide 2 forms of photo ID. However, you are only required to have 1 valid form of photo ID thereafter.
Q: Why do I have to have any ID?
A: The Credit Union is legally required to know its customers and verify their identity in accordance with the Anti-Money Laundering Regulations and CIMA Guidance Notes. Collecting your identification documents is a part of this process.
Q: Why do I have to get my identification documents certified?
A: Where the Credit Union has not had sight of any original documents being provided for its know your client (KYC) procedures, copies of such documents can only be accepted where it has been certified in accordance with the CIMA Guidance Notes. The Guidance Notes require that a certifier must be a suitable person (eg a lawyer, accountant, director or manager of a regulated entity, a notary public, a member of the judiciary or a senior civil servant). This certifier should sign the certified document and clearly state his/her name and the capacity they are signing in and include their contact address and phone number.
Q: Why must I complete a Source of Funds form for a cheque from a local bank?
A: The Credit Union is legally required to know its customers, including identifying and verifying the source of funds of its members. This includes when cheques/drafts drawn on another financial institution are being deposited by a member. Although the relevant financial institution has the equivalent obligation to know its customers, the Credit Union is not able to rely on the due diligence measures of that institution and is legally required to conduct its own due diligence checks.
Q: Do I have to have both IDs current?
At the time of account opening, you are required to provide 2 forms of photo ID. However, you are only required to have 1 valid form of photo ID thereafter.
Q: Why do I have to have any ID?
A: The Credit Union is legally required to know its customers and verify their identity in accordance with the Anti-Money Laundering Regulations and CIMA Guidance Notes. Collecting your identification documents is a part of this process.
Q: What are the main risks the Credit Union face and what is our tolerance for these risks?
A: The Credit Union is exposed to and has a low to moderate tolerance for:
Q: How do we monitor, prevent, and remediate these risks?
A: We have developed a risk management framework that outlines the role of the Board, the CEO, the Chief Risk Officer, the Executive Risk Management Committee, the Internal Auditor, managers, and all other staff members.
Q: Why do we care about risks?
A: It is necessary to identify what could go wrong and analyze its impact on the operations of the Credit Union so that we may put controls in place to prevent or mitigate the risks. We want to ensure that our members, employees, and assets are protected.
We want to enhance your member experience. Whether you have a suggestion, compliment, or complaint, we welcome your feedback!
For more imformation on giving feedback to the Credit Union, please click here.
Q: How do I provide feedback to my Credit Union?
A: Feedback may be provided as follows:
Q: What should I expect when I submit feedback?
A: Members should expect the following:
Q: Are interest rates at the Credit Union based on the Cayman Islands Prime Interest Rate used by commercial banks?
A: NO, Our Credit Union assesses economic conditions, such as unemployment and cost of living, that impact our members. We strive to keep interest rates steady so members can budget loan payments, which are usually the largest part of their expenses.
We try to remain consistent over time rather than reacting every time rates change in the market. In extreme economic conditions, we will reduce our interest rates in such a way to manage the expectations of member borrowers and members who only save with us.
Q: How often does the Credit Union change interest rates?
A: See the history of changes below since 2007, when mortgages were introduced:
The rate changes above clearly demonstrate that the Credit Union reacts to extreme market conditions; the period 2007-2010 was the great “Financial Crisis” for the world, and the Credit Union decreased interest rates by 3% during that period. Again, in 2020 at the beginning of the Pandemic, our Credit Union reduced rates by 1%.
The Credit Union is not yet a part of the Automated Clearing House (ACH) which would enable transactions directly between the Credit Union and commercial banks. However, members who have accounts with commercial banks can still transfer funds to the Credit Union’s accounts at Butterfield and CNB. For specific instructions on how to transfer, please click here.
Q: When I transfer my funds from the bank to the Credit Union’s account, when will I see the funds in my Credit Union account on CUonline?
A: Funds are downloaded daily and posted to members’ Credit Union Accounts, usually within 24 hours.
Delays may occur if:
Q: Which account will the Credit Union deposit my funds to?
A: The Credit Union will transfer your funds to your savings account, and you may then use CUonline to transfer funds to your share account or to another member’s account or to pay your loan.
Q: Why do I have to complete a source of funds form before my transfer is deposited to my Credit Union Account?
A: If your deposit is higher than the amount you declared as being your monthly deposit or it exceeds $5,000, you must complete a source of funds form, and you may also have to provide additional documents based on the source of funds; this in accordance with the Anti-Money Laundering Regulations.
You should receive an email from the Credit Union requesting the source of funds form. As soon as the information is received, your funds will be transferred to your account.
Q: What is an interest rebate?
A: An interest rebate is cash back in your account based on the following:
Make all loan payments on time/on the due date; one late payment for the year disqualifies you from getting the rebate.
Q: How is the interest rebate calculated?
A: The Directors approve a percentage for interest rebate at the beginning of the financial year, up to 3% of interest paid by members for the financial year. If the rate approved is 2%, this rate is applied to total interest paid for the financial year.
Q: When do I get the cash back?
A: Interest Rebates are usually paid to your share account in December
Q: How does the Credit Union earn its income to pay dividends?
A: The main income stream for the Credit Union is from interest income earned on loans to members; 90% of net surplus is derived from interest earned on loans to members.
Q: Will the Credit Union be offering a loan payment waiver (skip-a-payment) in December?
A: NO:
Q: Why is property insurance for a home purchased or constructed under a mortgage from the Credit Union required to be updated before you can conduct a transaction?
A: Property insurance covers all perils such as damage from fire, earthquakes, hurricanes, etc. The Credit Union has a charge placed on your property in case of default of loan payments. In order to protect its interest in the property, insurance is required. More so, the primary reason is to protect your property/home incase of catastrophes which will require you to claim on the insurance for repairs/rebuild.
Non-Compliant fee- is charged when both forms of identification on file at the Credit Union is expired; avoid this fee by always having, at least, one updated/current identification on file.
Loan late payment fee- charged when you loan payment is made after the due date; make sure you know the date that your loan payment is due and pay your loan before on that date. TIP: pay loan online with CUonline.
Dormant Account fee- is applied to your account on an annual basis if your account is not used for 12 consecutive months; avoid this fee by saving monthly, whatever amount you can afford.
Cash Withdrawal fee- is applied whenever you come to the Branch and withdraw cash; avoid this fee by applying for or using your ATM card, FOR FREE, at one of our 3 ATMs.