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        Vol. 9 No. 7                                                                                                  July/August, 2005

Rhode Island Credit Union League holds annual meeting
  Vol. 3 No. 1                             January, 1999

T   The Rhode Island Credit Union League’s
71st annual meeting was held June 21, 2005
at the Squantum Association in East Providence.
On behalf of Representative John Savage who
                                                     pics but other great programs such as the Credit
                                                     Union Classic.
                                                         At the annual meeting, four directors were
                                                     re-elected to three year terms. They are: Will-
was unable to attend at the last minute, outgo-      iam Brownell, President/CEO, Dexter Credit
ing Chairman Ken Poyton welcomed everyone            Union; Eugene Leco, Treasurer/Manager, Kent
in attendance and called the meeting to order.       County Memorial Hospital Employees Federal
In his remarks, Poyton addressed his apprecia-       Credit Union; Joan Saunders, Treasurer, Com-
tion for all the unified effort that the credit      munity & Teachers Federal Credit Union; and
unions of Rhode Island undertake to make life        Stephen White, President/CEO, Westerly
in the Ocean State better.                           Community Credit Union. Ellen Ford, Presi-
    Elizabeth Whitehead, National Credit             dent/CEO, People’s Credit Union was elected
Union Administration Associate Regional Di-          to serve on the board for a three year term.
rector of Programs in Region I congratulated             Also during the annual meeting, Colum-
everyone on a successful annual meeting and          bus Credit Union received an anniversary
was pleased to be part of this year’s event.         plaque for 55 years.
    Special Olympics Rhode Island Executive              Following dinner, former Attorney General
Director Michael McGovern and Special Olym-          Arlene Violet gave a lively and entertaining         Arlene Violet was the featured after dinner speaker at
pian/Global Messenger Kelly Burdon both              speech, entitled “The Curley Factor in Rhode         the annual meeting and gave an enlightening speech
spoke to the group. They highlighted the spe-        Island Politics,” that was extremely well received   regarding old time politics from the “Curley” days.
cial partnership that the League has with Spe-       by the attendees. She also commended the
cial Olympics Rhode Island as well as thank all      credit unions for the wonderful work they do            Inside . . .
the credit unions for all they do for their com-     for their communities in the state.
munities in not only supporting Special Olym-        Additional photos on Page 3.                            Bank Secrecy Act/Anti-Money
                                                                                                             Laundering Examination Manual

                                                                                                             Credit union volunteers
                                                                                                             participate in Summer Games

                                                                                                             Rhode Island credit unions
                                                                                                             present Special Olympics
                                                                                                             Rhode Island with $45,000

                                                                                                             MemberClose grows...and
                                                                                                             . . . and more!

Special Olympian/Global Messenger Kelly Burdon speaks to the group during the annual meeting.
                                                Legislative & Regulatory Notes
                                                                                                       banking agencies played a consultative role.
                                                                                                       The Office of Foreign Assets Control (OFAC)
Bank Secrecy Act/Anti-Money                                                                            collaborated on the development of core
                                                                                                       overview and examination procedures
Laundering Examination Manual                                                                          addressing compliance with regulations
                                                                                                       enforced by OFAC.

                                                                                                           The FFIEC BSA/AML Examination
    The National Credit Union Administration            The FFIEC BSA/AML Examination                  Manual emphasizes a banking organization’s
(NCUA) together with the Federal Financial          Manual was developed by the Board of               responsibility to establish and implement risk-
Institutions Examination Council (FFIEC)            Governors of the Federal Reserve System            based policies, procedures, and processes to
released the Bank Secrecy Act/Anti-Money            (Board), Federal Deposit Insurance Corporation     comply with the BSA and safeguard its
Laundering Examination Manual (BSA/AML              (FDIC), National Credit Union Admini-              operations from money laundering and terrorist
Examination Manual) recently. It is posted on       stration (NCUA), Office of the Comptroller of      financing. The BSA/AML examination
the Internet at: http://www.ffiec.                  the Currency (OCC), and Office of Thrift           procedures will guide examiners through an
gov/pdf/bsamanual.pdf. The manual’s release         Supervision (OTS) (collectively referred to as     evaluation of a banking organization’s BSA/
marks an important step forward in the effort       the federal banking agencies) in collaboration     AML compliance program regardless of its size
to ensure the consistent application of the BSA     with the Financial Crimes Enforcement              or business lines. The majority of the FFIEC
to all banking organizations including              Network (FinCEN), the delegated administra-        BSA/AML Examination Manual provides
commercial banks, savings associations, and         tor of the BSA. In addition, through the           narrative guidance and resource materials rather
credit unions.                                      Conference of State Bank Supervisors, the state    than specific examination procedures. This
                                                                                                       includes an overview of the BSA requirements
FACT Act interim final                                                                                 and the federal banking agencies’ supervisory
                                                                                                       expectations in this area.
                                                                                                           The Board, FDIC, OCC, OTS, and
rules on medical information                                                                           FinCEN have planned a series of events to brief
                                                                                                       the banking industry and field examiners on

T   The National Credit Union Administration
(NCUA), in cooperation with the federal bank
and thrift regulatory agencies, issued interim
final rules under the Fair Credit Reporting Act
                                                    other needs. A proposed rule was published
                                                    for comment on April 28, 2004.
                                                        The interim final rules create exceptions to
                                                    the general statutory prohibition on obtaining
                                                                                                       the FFIEC BSA/AML Examination Manual.
                                                                                                       These events include nationwide conference
                                                                                                       calls, regional outreach meetings, and a simulcast
                                                                                                       via the Internet. Registration details for the
                                                                                                       industry calls, regional outreach meetings, and
(FCRA) that create exceptions to the statutory      and using medical information. The provisions
prohibition against obtaining or using medical      are similar to those contained in the proposed     the simulcast will be communicated shortly to
information in connection with credit eligibility   rule and include exceptions for the use of         the banking industry via separate notice.
determinations. The interim final rules also        medical information that is also financial
address the sharing of medically related            information typically considered in credit            Horizons
information among affiliates. The effective date    underwriting. As authorized by the FACT Act,          is a monthly publication of the
for these rules is nine months after the date of    the agencies have expanded the scope of the           Rhode Island Credit Union League
publication in the Federal Register (June 9,        rules so that the exceptions will apply to all        20 Altieri Way
2005).                                              creditors, not just to creditors ordinarily           Warwick, RI 02888
    Section 411 of the Fair and Accurate Credit     regulated by one of the agencies.                     (800) 842-1242
Transactions Act of 2003 (FACT Act) amended             Section 411 of the FACT Act also amended          Fax (508) 481-3586
the FCRA to provide that a creditor may not         the FCRA to limit the ability of creditors and
obtain or use medical information in                others to share medically related information
                                                                                                          Chairman of the Board
connection with any determination of a              among affiliates, except as permitted by the          Kenneth Poyton
consumer’s eligibility, or continued eligibility,   statute, regulation, or order. The interim final      Providence Postal Federal Credit Union
for credit, except as permitted by regulations or   rules specify the circumstances in which
the FACT Act. However, the FACT Act also            creditors may share medically related                 President
requires the agencies to prescribe regulations      information among affiliates without becoming         Daniel F. Egan, Jr.
that permit creditors to obtain and use medical     consumer reporting agencies.
information for credit eligibility purposes when        The interim final rules are being issued by       Editors:
necessary and appropriate to protect legitimate     the Board of Governors of the Federal Reserve         Marguerite A. Thorsen
                                                                                                          Donna M. Bevilacqua
operational, transactional risk, consumer, and       Continued on Page 7.

Credit union volunteers participate in Summer Games
S   Sometimes the relationship with a charitable
organization is little more than the act of mail-
ing a check and the momentary warm feeling
that simple act generates. The more than sixty
credit union volunteers that worked at the Sum-
                                                       ics, athletics, bowling, cycling, gymnastics,
                                                       powerlifting, and unified soccer.
                                                           League support of the Summer Games is part
                                                       of an ongoing commitment to this worthy cause.
                                                           The credit union volunteers included:
                                                                                                                 Augusto Rojas; People’s Credit Union - Ellen
                                                                                                                 Ford, Jimmy Ford, Peter Quin, Shannon
                                                                                                                 Melchione, April Boyd, Bob DaSilva, Michael
                                                                                                                 Carroll, David Connor, Lyn Dawley, and
                                                                                                                 Courtney Hunter; Rhode Island Credit Union
mer Games had the opportunity to bask in that          Columbus Credit Union - Cidalia Rocha, Liz                League - Robert Kimmett and Al Ricci; Rhode
warm glow all day Friday, June 3 at the Univer-        Medeiros, and Linda Prevost; Credit Union                 Island Credit Union - Gina DePalo, Diane
sity of Rhode Island’s (URI) Kingston campus.          Central Falls - Keith Antunes, Paula Carlin,              Santos, Melissa Edwards, and JoAnna Zackarian;
The volunteers were assigned to “clerking,” walk-      Kathy Gugletti, Randy Sacilotto, Cheryl Silva,            Wave Federal Credit Union - Paul Archambault,
ing, and running events. Officially, that task         Steve Soderlund, Suzanne Pinarreta, Donna                 Dolores Relvinha, Richard Walker, and Adele
involves checking the athletes in and gathering        Wood, Robin Woods, and Charlie Zawacki;                   Moreau; Westerly Community Credit Union -
them into groups for their “heats” and then es-        Dexter Credit Union - Filomena Almeida, Bill              Mary Ellen Buckley, Peter Desillier, June
corting them to the track so that they can com-        Brownell, Marisol Garcia, Bob Leblanc, Laura              Mulcahey, Jason Buckley, Kris Kinder, Lisa
pete. Unofficially, it involves cheering, kidding      Lopes, and Laurie Robinson; Kent County Me-               Peltier, Diane Goulet, Missy Rhodes, and Meg
with and fetching drinks for the athletes, as they     morial Hospital Employees Federal Credit                  Sisco.
get ready.                                             Union - Cam Malone-Allen and Frank Allen;                     The League Board and Social Responsibility
    Many athletes achieved their personal best         Pawtucket Credit Union - Robert Andrade,                  Committee would like to thank the volunteers
in their events, a credit to their skills and hard     Becky Book, Anne LaFleur, Frank McFarland,                that participated in the Special Olympics Rhode
work, and their coaches’ commitment to train-          Dick Kanaczet, Anne Tremblay, Laurie                      Island Summer Games on behalf of the League
ing in the months leading up to the games.             Flaxington, Brian Regan, Donna Gregson,                   and their credit unions.
Athletes from across the state competed in aquat-      Madeline Glaude, Bill Slade, Patti Webb, and

Rhode Island...annual meeting                                                             - Continued from Page 1.

League Chairman Ken Poyton delivers his outgoing                             Attendees are engaged in the message that was delivered by Special Olympian/Global
chairman’s report.                                                           Messenger Kelly Burdon.

                                                                                      League Chairman Ken
                                                                                      Poyton presents Cidalia
                                                                                      Rocha,      Columbus
                                                                                      Credit Union with a 55
                                                                                      year anniversary plaque.

Annual meeting attendees listen as League Chairman Ken Poyton gives his report.

Rhode Island credit unions present
Special Olympics Rhode Island with $45,000
R   Rhode Island Credit Union League mem-
bers increased the green when they presented a
$45,000 check made payable to the Special
Olympics Rhode Island at the Annual Rhode
                                                      total amount raised this year by credit unions,
                                                      members, vendors, etc. The goal, set in Sep-
                                                      tember 2004, was $40,000 and the Social Re-
                                                      sponsibility Committee worked extremely hard
                                                                                                             Crestwood Country Club was the culmination
                                                                                                             of a fantastic fundraising effort. One hundred
                                                                                                             thirty two golfers and more than 40 sponsors
                                                                                                             combined to make the Annual Rhode Island
Island Credit Union Charity Golf Tournament           to exceed it.                                          Credit Union Charity Golf Tournament a tre-
on July 18, 2005. These funds represented the             This year’s golf tournament held at                mendous success.
                                                                                                                 After the tournament, Special Olympics
                                                                                                             Rhode Island Executive Director Mike
                                                                                                             McGovern along with Special Olympian
                                                                                                             Michael Lucca graciously accepted the “Special
                                                                                                             Check for $45,000” from representatives of the
                                                                                                             Social Responsibility Committee and the Rhode
                                                                                                             Island Credit Union League. On behalf of Spe-
                                                                                                             cial Olympics Rhode Island, Mike expressed his
                                                                                                             appreciation to the Rhode Island Credit Union
                                                                                                             League and its member credit unions.
                                                                                                                 The Rhode Island credit unions can be
                                                                                                             proud of these efforts that have been made in
                                                                                                             helping Special Olympics Rhode Island con-
                                                                                                             tinue to provide quality sports training and ath-
                                                                                                             letic competitions to over 2,500 children and
                                                                                                             adults with intellectual disabilities in the State
                                                                                                             of Rhode Island. The League will continue these
                                                                                                             efforts next year and will keep you posted on
                                                                                                             the upcoming events.

Pictured left to right: Ken Poyton, Providence Postal Federal Credit Union; Paul Archambault, Wave Federal
Credit Union; and Dan Egan, Rhode Island Credit Union League present Michael Lucca and Mike McGovern
from Special Olympics Rhode Island with a check for $45,000 at the conclusion of the golf tournament.

Golf tournament results...                                                                                   Best-Ball Scramble Format
                                                                                                             winning team

                                                                                                             Rhode Island Credit Union
The pre-tournament rain shower and the ex-            coveted Team Trophy for the Low Gross score
                                                                                                             Henry Godin, Barry Levin, Paul Valliere, and
treme afternoon heat and humidity did not de-         of 66 went to the Credit Union Central Falls
                                                                                                             Herve Champagne, Jr.
ter the golfers from enjoying a great game and        team of Gary Furtado, Gil Dubois, Dr. John
                                                                                                             Men’s Longest Drive
the spirit of giving to a worthy cause.               Maynard, and Al Degen. The team of Dick
                                                                                                             Jack Linteur
    Special Olympian Michael Lucca was on             Beretta, J.R. Beretta, Richard Beretta, and Bob
                                                                                                             Anchor Federal Credit Union
hand this year to play the 18th hole with each        Liguori from Adler Pollock & Sheehan won the
                                                                                                             Women’s Longest Drive
team.                                                 Low Net Team honor. In addition, many indi-
                                                                                                             Catherine Parente
    “Friendly competition” ruled the day. The         vidual skills contests were won:
                                                                                                             Credit Union Central Falls
                                                                  Low Gross Individual
                                                                                                             Closest to the Pin Contests
                                                                  Frank Doheny, 76
                                                                                                             Hole Number 3
                                                                  Pawtucket Credit Union
                                                                                                             Richard Beretta
                                                                  Low Net Individual
                                                                                                             Adler Pollock & Sheehan
                                                                  Fran Castrovillari, 64
                                                                                                             Hole Number 5
                                                                  Colagionvanni Law Offices
                                                                                                             Angelo Lanni
                                                                                                             Dexter Credit Union
                                                                  Three members of the winning               Hole Number 15
                                                                  foursome from Credit Union                 Dick Beretta
                                                                  Central Falls were on hand to              Adler Pollock & Sheehan
                                                                  accept the trophy following the            Hole Number 17
                                                                  tournament.                                Bob Rebussini
                                                                                                             Ocean State Financial

Golf tournament photos...
                                                                                 Special Olympian/Global
                                                                                 Messenger Michael Lucca gets
                                                                                 ready to putt on the 18th hole.

                                                               The foursome from Empire
                                                               Corporate Federal Credit
                                                               Union takes a moment by
                                                               their hole-in-one sign before
                                                               teeing off.

Phil Maniaci from Credit Union Direct Lending smiles for the
camera as they head out to the tee.                                              The foursome from People’s Credit Union found tournament volunteers Kathy Guadagni
                                                                                 (left) and Dante Benedetti (left) from their credit union and stopped for a group shot.

Columbus Credit Union recognized as Outstanding
Fundraising Credit Union at golf tournament
C   Columbus Credit Union received the “Out-
standing Fundraising Award” at the Rhode Is-
land Credit Union Charity Golf Tournament
on July 18, 2005. The credit union raised
                                                       Gold - $2,500 - $4,999
                                                       Anchor Federal Credit Union
                                                                                                            Columbus Credit Union
                                                                                                            People’s Credit Union
                                                                                                                      Providence Postal Federal Credit
$.84 per member. Following in order be-                                                                               Wave Federal Credit Union
hind the credit union was Anchor Federal                                                                              Silver - $500 - $2,499
Credit Union, Cranston Municipal Employ-                                                                              Alliance Blackstone Valley Federal
ees Credit Union, Wave Federal Credit Union,                                                                          Credit Union
Lincoln Town Employees Federal Credit                                                                                 Cranston Municipal Employees
Union, and Providence Postal Federal Credit                                                                           Credit Union
Union.                                                                                                                Dexter Credit Union
    The Rhode Island Credit Union League’s                                                                            Greater Woonsocket Federal Credit
Social Responsibility Committee recognized                                                                            Union
and thanked all the credit unions for their                                                                           Lincoln Town Employees Federal
efforts in raising funds for Special Olympics                                                                         Credit Union
Rhode Island.                                                                                                         Rhode Island Credit Union
Credit Union Fundraising Levels                                                                                       Bronze - $100 - $499
Titanium Level - $10,000+                                                                                             Community & Teachers Federal
Credit Union Central Falls                                                                                            Credit Union
Platinum - $5,000 - $9,999                                                                                            Journal Employees Federal Credit
Pawtucket Credit Union                                                                                                Union
                                                    Cidalia Rocha from Columbus Credit Union accepts the Outstanding
Westerly Community Credit Union                     Fundraising Award from League Social Responsibility Committee
                                                                                                                      Newport Columbian Federal Credit
                                                    Chairman Paul Archambault at the charity golf tournament.         Union

                       Social Responsibility

Pawtucket Credit Union marks grand opening of branch with
$10,000 fundraising drive to benefit The Tomorrow Fund
I   In celebration of the grand opening of its
new branch in Cranston, Pawtucket Credit
Union (PCU) announced a collaboration with
The Tomorrow Fund (TTF), which offers
financial and emotional support for children
with cancer and their families throughout
Rhode Island and southeastern Massachusetts.
    In addition to an initial donation of $2,500,
Pawtucket Credit Union will also donate $25
to The Tomorrow Fund for every new account
opened before August 18, 2005, up to 300
    “It is our hope that new account holders
will be pleased to join a financial institution
with an enduring goal of serving the people of
Rhode Island and southeastern Massachusetts,”
said Pawtucket Credit Union President/CEO
Kark A. Kozak.
    “Pawtucket Credit Union has been a
dedicated supporter of The Tomorrow Fund
over the years,” said Dr. Edwin Forman, a
founder of The Tomorrow Fund and the
Director of Hematology and Oncology at              Pictured (l to r) front row: The Tomorow Fund kids - Cameron Hennessey, Colin Hennessey, Ashley Zannini
Hasbro Children’s Hospital. “PCU’s generous         and Connor Hennessey. Back row (l to r): Shannon Lund, TTF kid; PCUCranston Branch Manager Donna
gift and fundraising drive demonstrate their        Wierzbicki; PCU Executive Vice President/COO, Robert Andrade; PCU President/CEO Karl Kozak; Chief of
ongoing commitment to their community and           Pediatric Oncology, Hasbro Children’s Hospital and founder of TTF Dr. Ed Forman; and Executive Director
                                                    of TTF Barbara Ducharme.
to helping others.”

Rhode Island Credit Union League scholarships awarded
T  The Rhode Island Credit Union League
recently awarded eight scholarships to students
that were either entering or returning to college
this autumn. The recipients were chosen from
                                                       The student winners are:
                                                    Mary P. Bean of Narragansett, sponsored by
                                                    Wave Federal Credit Union; Hunter Dufrane
                                                    of Rehoboth, MA, sponsored by Columbus
                                                                                                         sponsored by Pawtucket Municipal Employees
                                                                                                         Federal Credit Union; and Patrick Wood of
                                                                                                         Newport, sponsored by People’s Credit Union.

hundreds of applications submitted to credit        Credit Union; Stefanie Ferreira of Cumberland,
unions from throughout Rhode Island.                sponsored by Dexter Credit Union; Lee
   Applications were evaluated on a variety of      Hathaway of Westerly, sponsored by Westerly
criteria including the students’ academic           Community Credit Union; Lia Marcoux of
performance, financial need, extracurricular        North Providence, sponsored by Credit Union
activities, and the quality and content of an       Central Falls; Vanessa Scialabba of Cranston,
essay that addressed the applicant’s intended       sponsored by Rhode Island Credit Union;
major field of study and career goals.              Christopher M. Wildenhain of East Providence,

Credit Union Central Falls awards scholarships
F   For the past six years, Credit Union Central
Falls (CUCF) has awarded $10,000 in annual
scholarships to graduating seniors from area high
schools. Since the start of this program, the
                                                     Ryan Cipriano from Central Falls. Ryan will
                                                     be attending Bryant University in the Fall to
                                                     further his studies in Business Administration.
                                                        For the past five years, Credit Union Central
                                                                                                              Central Falls since June of 2004 and is the Vice
                                                                                                              President of Commercial Services. Jessica
                                                                                                              Reinhardt is from Riverside and will be
                                                                                                              attending American University in Washington,
credit union has awarded more than $60,000           Falls has awarded the Albert E. Landry                   D.C. and plans on majoring in broadcast
to area high school and college students. Every      Memorial Scholarship to recognize children of            journalism and psychology.
year the Credit Union Central Falls Scholarship      employees of Credit Union Central Falls for                  Credit Union Central Falls congratulates all
Committee reviews applicants on a combined           their academic, extracurricular, and community           recipients and has confidence that their
basis of grades, community involvement,              achievements. Jessica Reinhardt is the 2005              determination and passion will lead them to
financial need, and a personal essay illuminating    recipient and is the daughter of Fred & Ellen            their dreams and that their spirit will touch the
the applicant’s goals and aspirations. This year’s   Reinhardt. Fred has worked at Credit Union               lives of all those around them.
recipients strive for excellence in their academic
and personal lives and possess the determination
to succeed, the courage to follow their passions,
and the generosity to share their vision with
others. Their commitment to learning and
dedication to their communities exemplify life
qualities which the credit union values. Each
scholarship recipient received a check for
$2,000 and a $25.00 deposit in a newly opened
savings account.
    The 2005 CUCF scholarship recipients are:
Stacy Lima from Lincoln. Stacy will be
attending Stonehill College in the Fall where
she will study biology and neurology.
Stefanie Ferreira from Cumberland. Stefanie
will attend the University of Rhode Island this
Fall where she plans to major in pharmacy.
Anthony Silva from Cumberland. Anthony
will be attending Bryant University in
Danielle Cortesa, from Uxbrige, MA. In
September, Danielle will be attending Boston         Pictured left to right: Richard Bessette, CUCF Board of Directors; Anthony Alex Silva; John DeGoes, CUCF
                                                     Board of Directors; Stefanie Ferreira; Jessica Reinhardt; Danielle Cortessa; Stacy Lima; Ryan Cipriano; Gary E.
                                                     Furtado, CUCF President/CEO.

                                                                                                              FACT Act...medical
Credit union people. . .                                                                                      Continued from Page 2.

M  Mike Urgo has joined Westerly Community
Credit Union as a Mortgage Officer. He will
be responsible for the outside
mortgage origination, allowing
                                                     has a bachelor’s degree in communications from
                                                     the University of Rhode Island and an associate’s
                                                                 degree in business management
                                                                 from Community College of Rhode
                                                                                                              System, Federal Deposit Insurance Corpora-
                                                                                                              tion, National Credit Union Administration,
                                                                                                              Office of the Comptroller of the Currency, and
                                                                                                              Office of Thrift Supervision. The rules of each
mortgages to be opened anywhere or                               Island. Mike is on the Planning              agency are substantively identical.
anytime that is convenient to the                                Committee for the American                      The rules are being issued as interim final
member.                                                          Cancer Society’s Westerly Relay for          rules to allow for public comment on their
   Mike has managerial and financial                             Life, Treasurer of the Misquamicut           expanded scope.
experience, most recently working at                             Business Association, and a member              Link to the Interim Final Rules on Medical
Valenti Toyota as a Business Manager,                            of the Planning Committee for the            Information at:
as well as being owner of the Tiki                               Westerly Community Center.                   RegulationsOpinionsLaws/RecentFinalRegs/
Guy’s Surf Supply in Westerly. He                                                                             final_regs.

Empire Corporate Federal Credit Union has
two exciting conferences on tap for this Fall
C  Credit union executives understand the
value of education and being “in the know”
about what is happening in this fast-paced
financial world. For this reason, Empire
                                                    bonus, all sessions will repeat later in the
                                                    morning. The day is capped off with an Empire
                                                    tradition that everyone enjoys, some exciting
                                                    optional outings.
                                                                                                         of time-challenged operations professionals.
                                                                                                         Empire understands the demanding and fast-
                                                                                                         paced field of operations and is pleased to offer
                                                                                                         its second annual Ops Outlook Conference -
Corporate Federal Credit Union is pleased to           On Thursday, September 15, the final day          designed specifically for the operations
invite all credit union executives to attend its    of the conference, Empire concludes with a           community. The exchange of information and
upcoming credit union conferences this Fall.        session no one will want to miss: “Managing          ideas is vital to credit union operations
   Each conference is jam-packed with speaker       Your Balance Sheet in Uncertain Times.” This         professionals everywhere.
presentations and information important to          session will provide valuable insight into how           Highlights of this conference include:
maximizing a credit union’s efficiency and          to effectively manage a credit union’s balance       • The track advantage - Ops Outlook’s track
bottom line.                                        sheet during times of economic volatility, all       format expands the possibilities by allowing
                                                    from a regulatory standpoint.                        individuals to choose learning sessions best
    Financial Strategies Conference                                                                      suited to their credit union’s needs. Choose
Including new strategies to achieve balance         Ops Outlook Conference                               from a Compliance Track, a Payments Track, or
sheet management goals                              Operations Professionals: This conference is         a CU Exchange Track.
When: September 13-15, 2005                         all YOURS.                                           • A Special Bonus Track - This new Bonus
Where: Newport Marriott, Newport, RI                When: October 18-19, 2005                            Track will feature the conference’s most in-
Registration deadline: August 26, 2005              Where: Marriott Hotel, Albany, NY                    demand topics.
Contact name: Linda Riddle, 800-253-0053,           Registration deadline: September 30, 2005            • Exchange made easy - Swap ideas, learn from
ext. 3997;                   Contact name: Sandra Gingell, 800-253-0053,          each other, and make connections during the
    The conference kick starts with an optional     ext. 4113;                   tradeshow, meals, the cocktail reception, and
pre-conference session (for an additional fee)          This concentrated one-and-a-half day             between learning sessions.
on Monday, September 12, that drills into ALM       Empire conference is designed to serve the needs
functionality, including a hands-on segment.
When it comes to enhancing the financial health
of a credit union and satisfying the regulators,
it makes strategic sense to know as much as
possible about Asset/Liability Management
(ALM).                                              Senate poised to address data security
    On Tuesday, September 13, the conference
moves into full gear with a morning session             The Senate Commerce Committee said it            access code, password, or other personal identi-
entitled “11 Steps to Controlling Expenses.”        would mark up legislation that would require         fication that would allow access to an
This session will explore the impact that           the Federal Trade Commission to develop data-        individual’s account. The second bill mandates
expenses have on credit unions and how to           security rules for all non-governmental entities     that banks and credit unions, many retailers,
control them.                                       that handle sensitive personal data. This move       data brokers, and credit bureaus notify con-
    The next session, “Leading with Lending,”       follows the introduction of two data security        sumers when their sensitive personal financial
will explore the challenges of managing a           bills in the House recently.                         information is placed at risk by a data security
profitable loan portfolio given today’s economic    Among the pending bill’s provisions, it:             breach.
conditions. The after-lunch session, “Life After    • Would create a national “breach-notification”          The Credit Union National Association
Greenspan” is sure to draw attention. This          standard requiring companies to notify con-          (CUNA) supports requiring the major credit
session will explore the implications of Chairman   sumers and law enforcement of security lapses        card companies to notify financial institutions
Greenspan’s impending retirement on financial       that put their customers’ personal data at risk;     when a breach has occurred, and for financial
markets and institutions.                           • Includes a “security freeze” provision that        institutions to be able to disclose the source of
    Rounding out the day, “Reaching New             would enable consumers to prevent creditors          the breach to the consumer, according to CUNA
Heights in Business Services” will relay what       with whom they do not have existing accounts         Legislative Affairs Vice President Gary Kohn.
small business owners really want from their        from accessing their credit reports.                 For additional information on this topic, go to
financial institution, and how to deliver those         Recently, two separate bills were introduced     the following websites: Issues 2005: Data Secu-
services with proven credit union strategies and    in the House. One would require companies to         rity (
best practices.                                     warn consumers if a breach were “reasonably          tive/issues/2005/data_security.html) and Iden-
    The second day of the conference,               likely” to result in transaction fraud if the com-   tity Theft Resources for Credit Unions (http://
Wednesday, September 14, keeps up the               promised data included a financial account 
momentum with exciting breakout sessions that       number in combination with a security code,
highlight some of Empire’s professional
management team members. And, as an added

Project LEAP aims to help credit                                                                            Broad Regulatory
unions in rising rate environment                                                                           Relief Bill
A   A new educational initiative designed to help
credit unions succeed in a rising rate
environment by coordinating national and state
training, research, and publishing resources on
                                                        To provide relief from problems associated with
                                                        a declining interest margin, credit unions have
                                                        a variety of time-tested strategies they can
                                                        pursue. Among other things, credit unions can:
                                                                                                            H   House lawmakers introduced a broad bill
                                                                                                            designed to provide regulatory relief to credit
                                                                                                            unions, banks, and thrifts. House Financial
                                                                                                            Services Committee Members Jeb Hensarling
strategies that strengthen credit union bottom          • Drill deeper into the smaller loan needs of       (R-Texas) and Dennis Moore (D-Kan.) intro-
lines has been introduced by CUNA.                      deserving members, and implement an                 duced the Financial Services Regulatory Relief
    Project LEAP: Showcasing Lending                    aggressive marketing and training effort to make    Act of 2005. The Senate is expected to unveil
Excellence and Performance was formed by                more unsecured debt that might otherwise be         a regulatory relief measure, but not until Con-
CUNA and supported by the CUNA Mutual                   financed by high-interest credit cards or           gress returns from its August recess.
Group and the American Association of Credit            predatory lenders.                                      The Credit Union National Association
Union Leagues (AACUL). It serves as a                   • Implement a risk-based lending program to         (CUNA) strongly supported this bill which
reference to products and services offered              make more loans and earn a higher yield.            includes a new net worth provision that would
through CUNA and the state leagues that help            • Adopt a rate-change model that quickly            allow credit unions to continue pooling their
credit unions to address overall growth                 reacts to Federal Reserve rate changes as well as   capital after mergers, but excludes a proposal
strategies, reshape their asset/liability portfolios,   rate changes made by competitors.                   by the National Credit Union Administration
boost non-interest revenue, build membership,           • Create a lending incentive program that           (NCUA) for a risk-based capital system.
grow consumer loan portfolios, and invest in            rewards staff for making “second” loans to              The NCUA capital proposal is included in
developing a sales and service culture that better      members applying for a loan.                        the Credit Union Regulatory Improvements
markets and cross-sells products and services.          • Maximize non-interest revenue                     Act (CURIA, H.R. 2317), as well as a provi-
    Even with a capital-to-asset ratio of almost        opportunities by selling loan-related ancillaries   sion that would increase credit union member
11 percent at year-end 2004, credit unions’             such as credit insurance, or other products and     business lending limits to 20%, up from
return-on-assets (ROA) averaged 95 basis                services that provide fee income and are a low-     12.25%.
points — a drop from 98 year-end 2003.                  cost source of funds such as share drafts.              The Financial Services Regulatory Relief Act
CUNA economists project that the average                    Project LEAP explores and emphasizes these      of 2005 carries a number of benefits for credit
ROA could drop to 85 basis points this year,            strategies and more, such as evolving               unions approved in earlier House votes:
and 80 basis points in 2006. More than 3,500            socioeconomic and technologic trends that will      • Privately insured credit unions to become mem-
credit unions have an ROA of less than 40 basis         alter the demographic makeup of credit union        bers of a Federal Home Loan Bank;
points, and more than 1,400 have a negative             membership, and influence the financial needs       • Leases of land on federal facilities for credit
ROA.                                                    of members and their service preferences. The       unions;
    Credit union share portfolios are heavily           bottom line is to enable credit unions to grow      • Investments in securities by federal credit unions;
weighted in favor of short-term, low-cost               and prosper in a dynamic environment.               • An increase in general 12-year limitation of
deposits that will re-price quickly as rates rise.          For more information, go to        term of federal credit union loans to 15 years;
Loan portfolios, on the other hand, re-price            and click on the link to Project Leap, located      • An increase in 1% investment limit in credit
more slowly and are heavily weighted towards            under the “CUNA Initiatives” banner or e-mail       union service organizations;
long-term loans that yield lower rates of return.                                 • Member business loan exclusion for loans to
                                                                                                            non-profit religious organizations;
                                                                                                            • Check cashing and money transfer services of-
   Compliance starts at the teller line                                                                     fered within the field of membership;
                                                                                                            • Voluntary mergers involving multiple common

                                                                                                            bond credit unions;
       League Senior Vice President Paula Dion          regulation but implementation is vital,”            • Conversions involving common bond credit
   has spent a good deal of time over the past          stated Dion. “Too often our frontline people        unions;
   year working with credit unions to help              are asked to implement these procedures             • Credit union governance;
   management get Bank Secrecy Act policies             without the background knowledge                    • Providing the NCUA with greater flexibility
   and training programs implemented. She               required to fully ensure that the complex           in responding to market conditions;
   praised management for their efforts to meet         regulations are followed.” A training               • An exemption from pre-merger notification re-
   the very specific training guidelines in the         program that focuses on the “why” of the            quirement of the Clayton Act; and
   act. However, she has witnessed that there is        procedures as well as the “how” can make a          • Treatment of credit unions as depository insti-
   challenge in getting tellers and other               huge difference in successful                       tutions under securities laws.
   frontline personnel up to speed on the               implementation.                                         The bill also would streamline the process
   procedures that must be followed in order                For more information on effective               of filing currency transaction reports and sus-
   to stay in compliance.                               compliance training, please contact Paula           picious activity reports as required by the Bank
       “Written policies and procedures are an          Dion at the League, (800) 842-1242.                 Secrecy Act.
   essential component of compliance in any

                                                                                                           E-mail phishing
                           Agency Update                                                                   scam

MemberClose grows…and grows!
                                                                                                           T   The League has received a number of calls
                                                                                                           from area credit unions concerning a type of e-
                                                                                                           mail fraud attempts disguised as correspondence

                                                                                                           from the National Credit Union Administration
                                                                                                           (NCUA). These fraudulent e-mails are aimed

I   In May of 2004 Members Insurance Agency
launched its MemberClose home equity program.
One year later, it announced Leominster Credit
Union as the 50th credit union to begin using
                                                   • Legal & Vesting Report: A legal description
                                                   of the property is available in the event that the
                                                   credit union cannot obtain one from the
                                                   member or the county website.
                                                                                                           at the consumer with the intent of getting them
                                                                                                           to disclose personal financial information. The
                                                                                                           following information, which appears on the
                                                                                                           NCUA website, explains the fraud
                                                                                                           methodology and the NCUA’s practices
the web-based program to gain efficiencies in      • Flood Certifications: There are four (4) flood
processing home equity loans. There are now        certification providers built into the                  regarding e-mail communication.
over 60 credit unions using MemberClose and        MemberClose platform. This ensures the highest
that number is sure to continue to grow.           probability of an automated flood certificate.          From The NCUA Website
    MemberClose is not only growing in the         • Documentation Preparation: Once the back                  Recently, there have been multiple e-mail fraud
number of participating credit unions, it is       office processing of the loan is complete, the          attempts, known as “Phishing,” that were
growing in the scope of services. In addition to   credit union can point & click the Doc Prep tab         initiated via e-mail sent to both the general public
the initial service offering (detailed below),     and their customized and compliant loan                 and to some credit union members that appeared
credit unions are now using MemberClose to do      documents are produced. The information that            to be from NCUA. This false e-mail asked for the
nationwide, anywhere, anytime lending.             is resident in MemberClose pre-populates the            recipient to click on a link to verify their credit
    This is especially useful for credit unions    documents which greatly eases the preparation           union account registration. If the recipient
that may have a significant member population      process.                                                proceeded to do so, the link directed them to a false
in other states. Many credit unions do not         • Closing Services: For members for whom                website and asked for their credit union account
actively market to those members for equity        closing at the credit union is not practical or         number and PIN, along with other personal
lending. In fact, they shy away from it because    convenient, a suite of closing services is available.   information.
the process is too cumbersome and confusing        These services include the signing of the                   NCUA does not ask credit unions’ members for
for both the credit union and the member.          documents, the dispersing of the funds, and             such personal information. Anyone who receives
MemberClose provides a fast, easy, and reliable    the execution of any discharges.                        an e-mail that purports to be from NCUA and
way to process these loans. Everything is          • Recording Services: Through MemberClose,              asks for account information should consider it to
provided from the appraisal to the closing         the credit union can follow the documents               be a fraudulent attempt to obtain their personal
documents. Through the system, the closing         along a 7-point tracking system. This is available      account data for an illegal purpose and should not
and the recording of the documents are ordered.    in all of the more than 3,600 recording                 follow the instructions in the e-mail.
Having MemberClose will allow credit unions to     jurisdictions.                                              If you responded to such an e-mail and provided
actively pursue these new markets.                     MemberClose provides for the ultimate in            any confidential account information, please
    The complete MemberClose list of services      flexibility. Credit unions simply log onto our          notify your credit union immediately of the scheme.
include the following:                             secure website and then point & click their way         You should also change your account’s PIN, and
• Credit Bureau: Credit unions are licensed        through the lending process. The credit union           take any additional action recommended by your
with all three of the major credit repositories.   selects only the specific services it needs for each    credit union to protect your account.
The reports are available instantaneously and      loan that it makes.                                         Formal complaints can be filed with http://
are formatted in an easy-to-read manner.               Getting started with MemberClose is easy too.
• Automated Valuation Model (AVM): There           There are no enrollment fees and there are no
are seven (7) AVM providers that work in a         minimum transaction levels that must be met.
cascading fashion to ensure the highest possible   Once the decision is made to start using
“hit ratio.”                                       MemberClose, a training session is scheduled.
• Mortgage Loan Report (MLR): This is a            The training is short and simple, because the
credit based report that negates the need for      system is so easy to use. On-going training and            HOLIDAY
the credit union using an attorney to conduct a    telephone support is provided to all users.
title search. The report, along with a system-         If you would like a demonstration of                  The League office will be closed on Mon-
generated Borrower’s Affidavit, will insure the    MemberClose, please call Bill Smith of Members            day, September 5 for Labor Day. The
credit union’s lien position.                      Insurance Agency at 1-888-746-2476.                       League’s regular office hours are Monday
                                                                                                             through Friday 8:00 a.m. to 5:00 p.m.

ID theft worries on the rise
N  Ninety-five percent (95%) of consumers are
worried about being fraudulently impersonated
and having their credit ruined and debts run
up – an increase of 20% from 2000. According
                                                        A majority of consumers surveyed – 87%
                                                     — believe that companies that do not protect
                                                     personal information should be required by law
                                                     to pay to restore credit ratings. Fines on these
                                                                                                             “People need to be more protective of their
                                                                                                          personal information, particularly with whom
                                                                                                          and how they share it, whether online, over the
                                                                                                          phone or in person,” said Dan McCabe, vice
to Chubb Group of Insurance Companies,               companies were supported by 65%, with                president of Chubb & Son. If such thefts
more than 20% of the more than 1,850 survey          criminal charges desired by 63%. Sixty-four          occur, 28% believe it would take more than a
respondents reported they had been victims of        percent of the respondents said they disclosed       year to rectify the problem and 40% think it
identity theft or fraud. Twenty-seven percent        confidential information by phone or online in       would cost more than $1,000.
said their credit card or one of their family        the past six months.
members’ cards had been fraudulently used –
up from 19% in 2000.

Bankruptcy filings jump in first quarter
G  Government figures show a 7.9% increase
in bankruptcy filings during a three-month
period ending March 2005. Information
posted by the Administrative Office of the U.S.
Courts in June showed 401,149 bankruptcies
                                                     McLain said recently that the last quarter figures
                                                     are the real indication of what is likely to occur
                                                     in terms of bankruptcy activity during this year.
                                                         “The number of filings is likely to rise later
                                                     this year as debtors’ attorneys are expected to
                                                                                                          changes in the new “means test,” language for
                                                                                                          reaffirmations of debt, and eventually in
                                                                                                          Regulation Z, Truth in Lending Act, disclosures.
                                                                                                          They also will be required to provide a toll-free
                                                                                                          number so members can find out how long it
for that period compared to 371,668 during           advise debtors to file before a new law, The         will take to pay off debts if they pay only the
the previous quarter.                                Bankruptcy Abuse Prevention and Consumer             minimum requirement. While credit unions
   A release from the Administrative Office          Protection Act of 2005, goes into effect in mid-     can continue providing credit counseling,
focused on an overall drop in bankruptcy filings     October,” said McLain, who is assistant general      bankruptcy trustees must approve the agencies
over a twelve month period, but the Credit           counsel and senior compliance counsel for            providing the mandatory counseling for filers.
Union National Association’s (CUNA) Mike             CUNA. He said credit unions can expect

CUNA stuffer explains new bankruptcy laws
W   With almost every new law, consumers are
bombarded by messages from both advocates
and detractors of the change, which can muddy
their understanding of how the changes will
                                                     a fee-based lending product designed to help
                                                     credit union members meet their loan
                                                     obligations during a number of unforeseen
                                                     circumstances. “Debt Cancellation Pays, When
                                                                                                          new contribution limits that came to fruition
                                                                                                          through the tax cuts. The stuffer also highlights
                                                                                                          the differences between the traditional and the
                                                                                                          Roth IRA.
truly affect them. Because the recently passed       You Can’t” (stock number 26759) provides an              New surveys and current tax deduction
Bankruptcy Abuse and Prevention and                  introductory view of the product and how it          figures for home equity loans were included in
Consumer Protection Act of 2005 is no                can help in times of disability, unemployment,       the most recent version of “Home Equity Loans
exception, CUNA created a new statement              and death.                                           Put Your House to Work” (stock number
stuffer to provide a clear and unbiased                  As additional provisions of the Fair and         20055). It also defines the loan versus the line
explanation of how the law will affect credit        Accurate Credit Transactions Act (FACT Act)          of credit, re-payment terms and conditions, and
union members.                                       of 2003 have now taken effect, the “Your Rights      potential risks for consumers to consider.
    The “What Bankruptcy Reform Means to             Under the Fair and Accurate Credit                       Finally, “Helping Your Teen Become
You” statement stuffer (stock number 25113)          Transactions Act” statement stuffer (stock           ‘Accountable’” (stock number 23103) offers
illustrates how abuses in the system cost families   number 25740) was revised to include the new         tips and advice for parents to help introduce
as much as $550 a year in higher prices for          developments and how they will help                  basic money management topics to their teens
consumers, higher loan rates, lower savings          consumers. Overall, the stuffer helps credit         such as how to choose the right checking
yields, and higher fees. The stuffer addresses       union members understand and protect the             account and manage spending.
consumers in general as well as credit union         information in their credit reports and details          For more information, to view a PDF version
members in particular and explains the three         how to get help when their financial                 of the statement stuffers, or to buy online, go
key elements of the new law that received strong     information has been stolen, plus it details the     to, type “stuffers” in the search
support from credit unions.                          new responsibilities financial institutions will     box or a specific stock number in the product
                                                     have under the FACT Act.                             finder box. To order through CUNA Member
Other new and revised stuffers include:                  “IRA Changes Power Your Savings” (stock          Service, call (800) 356-8010, press 3, and use
   The second new statement stuffer overviews        number 23655) was revamped to reflect the            the stock number as a reference.

             Septemb st
                                                   Calendar of Events

   Webcast Seminars                                 Empire Corporate Federal                           What the Future Holds
   August 17 - Generating & Keeping Loans           Credit Union’s Strategies Conference               for the Financial Industry
   September 28 - How to Read and Sell from         September 13-15, 2005                              September 21, 2005
   a Credit Report                                  Newport Marriott                                   Radisson Hotel
                                                    Newport, RI                                        Milford, MA
   QUICKBITES (one hour telephone
   conferencing)                                    Credit Union Employee Boot Camp                    Empire Corporate Federal Credit
   August 31 - Only the Paranoid Lenders            September 20, 2005                                 Union’s Ops Outlook Conference
   Will Survive                                     Empire Corporate Federal Credit Union              October 18-19, 2005
   September 20 - Robbery and the Security          Warwick, RI                                        Marriott Hotel
   Awareness                                                 -or-                                      Albany, NY
   September 29 - Marketing: Creating a             October 17, 2005
                                                    Credit Union Center                                Fall Conference
   New Buzz
                                                    Marlborough, MA                                    October 28-30, 2005
                                                                                                       Cliff House Resort & Spa
                                                                                                       Ogunquit, ME

                                                                                                       Marketing Director
                                                                                                           City of Boston Credit Union, a $212
                                                                                                       million, state-chartered credit union located in
                                                                                                       Boston, is seeking a Marketing Director to direct
                                                                                                       the development, implementation, and
                                   Classifieds                                                         maintenance of its marketing, public relations
                                                                                                       and sales programs. Reporting to the CEO,
                                                                                                       this position will be directly responsible for all
                                                                                                       marketing programs and developing tactical
                                                                                                       plans consistent with the overall objectives of
CEO/President                                       Chief Lending Officer                              the credit union. Duties will include developing
    The Board of Directors of a Providence,              Massachusetts State Employees Credit          copy and materials for promotional offerings,
Rhode Island based credit union is currently        Union (MSECU) is seeking a Chief Lending           ongoing products and member communica-
seeking a new CEO/President for this finan-         Officer. This is an excellent management career    tions. This position will also be responsible for
cially sound $190M credit union. Successful         opportunity for the right person. We are looking   developing internal sales programs to increase
candidates must have at least 5 years of broad      for a dynamic individual to assume                 product sales and cross-sell ratios.
based financial and management experience           responsibility for all consumer and mortgage           Interested candidates should be prepared
with a prior leadership role in the credit union    lending activities. Strong background in all       to provide a portfolio of materials that they have
industry and/or banking industry of compa-          lending functions and proven management            developed from prior experiences. A Bachelors
rable size plus a minimum of a Bachelor’s de-       experience are required. Marketing sensitivity     Degree in Marketing or five (5) years experience
gree. Successful candidates will be responsible     and the ability to implement, monitor and          in a marketing management position, preferably
for the implementation of the strategic vision      manage various cross selling programs necessary.   within the credit union or banking industry, is
set by the Board of Directors and oversight of      Position reports directly to the CEO. MSECU        required. A working knowledge of credit union
the credit union’s lending, financial and opera-    is an equal opportunity employer. Please email     regulations pertaining to marketing and
tional activities. This credit union is an equal    your resume and salary requirements to             advertising is also required
opportunity employer. For confidential consid- You may also fax to          City of Boston Credit Union offers a
eration candidates must submit resume no later      (617) 227-6696 or mail to Mr. John J. Morrissey,   competitive compensation and benefit package.
than August 15, 2005, including salary history      President/CEO, Massachusetts State Employees       For consideration, please send your resume to
and salary requirements to: Search Committee,       Credit Union, 101 Merrimac Street, Boston,         Human Resources, City of Boston Credit Union,
P.O. Box 28007, Providence, RI 02908-9939.          Massachusetts 02114.                               One Union Street, 3rd floor, Boston, MA 02108
                                                                                                       or fax to (617) 635-1367.


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