MEMBER TERM FUNDING
Up to $25,000,000 per quarter per Credit Union
The Capital Market CD (CMCD) is a new innovative program that provides your Credit Union with a consistent source of MEMBER TERM DEPOSITS.
There are no fees, subscriptions, collateral, long-term commitments, or minimums required to participate.
CMCD-At-A-Glance:
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Member Term Deposits that compliments your traditional member deposit base
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Mitigate IRR and NEV Test in a rising interest rate environment
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Support Longer Term Lending
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Provide an Additional Contingency Funding Source
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NCUA Legal Opinion – CMS, in collaboration with Hogan Lovells, has obtained a legal opinion from the NCUA, regarding the application of the NCUA’s share insurance regulations to the CMCD program. The opinion can be found here:
www.ncua.gov/regulation-supervision/legal-opinions
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Lower Cost of Funds – Rate on “member” CDs purchased will be competitive with FHLB advances and generally below brokered CD rates.
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Extended Maturity – Term of CDs purchased range from 3-10 years. Initial purchases will have a 5yr term. CDs are purchased on the same date, and same terms for all Credit Unions.
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Access to Large Term Deposits – The CMCD program offers Credit Unions access to a member- funding source larger than all existing Credit Union Industry deposits .
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Exclusivity - CU Capital Market Solutions (CMS), a “CUSO”, is the only company able to provide this consistent source of “Member CDs” to Credit Unions.
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CU Funding Company LLC will work with each Credit Union to determine how it can meet the individual Credit Union’s membership requirements.
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CU Funding Company LLC will purchase CDs from participating Credit Unions at least on a quarterly basis.
Click to request the CMCD Webinar Presentation and CMCD White Paper
CMCD Program Participants
CU Capital Markets Solutions (CMS)-CMCD Creator & Sponsor
JP Morgan - Structuring Agent
Hogan Lovells US LLP - Legal Counsel & Program Regulatory Advisor
US Bank (NA) - Trustee and Collateral Agent
Jones & Keller, P.C. - Sponsor’s Legal Counsel
Fitch and Moody’s - Rating Agencies for CMCD notes
For more information please contact:
Robert Colvin 913.402.2616 rcolvin@cucmsllc.com
Daniel Skehan 678.960.2917 dskehan@cucmsllc.com
Ryan Enright 913.402.2609 renright@cucmsllc.com
Bill King 678.960.2912 bking@cucmsllc.com
