Member Term Deposits
NEW INNOVATIVE PROGRAM
PROVIDING CREDIT UNIONS
MEMBER TERM DEPOSITS.
INAUGURAL OFFERING $25 MILLION PER CREDIT UNION.
NO SUBSCRIPTION FEES.
NO LONG TERM COMMITMENTS.
NO MINIMUMS REQUIRED.
Member Term Deposits that compliments your traditional member deposit base.
Mitigate IRR and NEV Test in a rising interest rate environment.
Support Longer Term Lending
Provide an Additional Contingency Funding Source
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
Lower Cost of Funds
Rate on “member” CDs purchased will be competitive with FHLB advances and generally below brokered CD rates.
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.
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 .
CU Capital Market Solutions (CMS), a “CUSO”, is the only company able to provide this consistent source of “Member CDs” to Credit Unions.
CU Funding Company LLC will work with each Credit Union to determine how it can meet the individual Credit Union’s membership requirements.
CU Funding Company LLC will purchase CDs from participating Credit Unions at least on a quarterly basis.
CMCD Program Participants
CU Capital Markets Solutions (CMS) | CMCD Creator & Sponsor
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