MEMBER TERM FUNDING

Up to $10,000,000 per quarter per Credit Union

THIS IS NOT A BROKERED DEPOSIT PROGRAM or "BEST EFFORTS" FUNDING

  • Member Term Deposits - A consistent source of “new” Term Member Funding that differs from your traditional member base.

  • Mitigate IRR and NEV Test in a rising interest rate environment

  • NCUA Legal Opinion – CMS, in collaboration with JP Morgan and their outside counsel Hogan Lovells, has obtained a legal opinion from the NCUA, regarding the application of the NCUA’s share insurance regulations to the proposed structure of the CMCD program.

  • Lower Cost of Funds – Rate on “member” CDs purchased will be competitive with FHLB advances and generally below brokered CD rates.

  • 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, with the same terms for all CUs.

  • Access to Large Term Deposits – The CMCD program offers CUs access to a member- funding source larger than all existing CU deposits in the industry.

  • Exclusivity - CU Capital Market Solutions (CMS), a “CUSO”, is the only company able to provide this consistent source of “Member CDs” to CUs.

  • CU Funding Company LLC will work with each CU to determine how it can meet the individual CU’s member requirements.

  • CU Funding Company LLC will purchase CDs from participating CUs on a quarterly basis.

A legal opinion from the NCUA (dated April 23, 2021) regarding the application of the NCUA’s share insurance regulations to the proposed structure of the CMCD program can be found on the NCUA website at:

www.ncua.gov/regulation-supervision/legal-opinions

CMCD Program Participants

CU Capital Markets Solutions (CMS)-CMCD Creator & Sponsor

JP Morgan - Structuring Agent and Lead Underwriter of CMCD Notes

Hogan Lovells US LLP - Underwriter’s 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

Or email info@cucmsllc.com to schedule a webinar presentation.