| Is Members United participating in the SIP program? |
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Yes. We are participating by advertising the program, educating credit unions about it, and helping them initiate the program and complete paperwork. The SIP program requires corporates to retire existing debt and in a specific priority order: first Federal Reserve Discount Window borrowings until reduced to zero, then FHLB borrowings, then other qualifying debt. Since we have no Discount Window debt – while others in the network do and could benefit from SIP – and since it would cost Members United more to use SIP proceeds to retire the FHLB debt on our books, we have so far chosen not to bid for SIP.
We will continue to evaluate what is in our members’ best interest on a month-to-month basis and may participate in future auctions. |
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| What forms are required to participate in the SIP program? |
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For each SIP request, your credit union must complete and submit to Members United the CU SIP Subscription Form and the Authorization Form, which you can access here. |
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| How should my credit union submit the required forms to Members United? |
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After you’ve completed the required forms, you may fax them to (518) 292-3737, Attention: Lending. |
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| Why should my credit union participate in the SIP program? |
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The CU SIP program allows credit unions to borrow funds from the Central Liquidity Fund (CLF) at a low interest rate. The SIP Notes bear the CLF interest rate, plus 25 basis points, making this an attractive investment alternative for credit unions.
In addition, SIP Notes are fully guaranteed by the National Credit Union Share Insurance Fund. The program also directly helps Members United by lowering the overall borrowing cost for the corporate network and adding liquidity to the network. |
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| What is the deadline for my credit union to submit completed SIP forms to Members United? |
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The SIP program has monthly deadlines that allow your credit union to participate in the following month’s SIP offering. Your credit union must submit its forms to Members United by 2:00 pm Central time on the last Friday of each month. The program ends on June 26. |
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| When are SIP awards announced each month? |
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SIP awards are announced on the first Friday of each month. Participating credit unions receive a confirmation letter the following Friday. You can find additional information about booking your CU SIP entries on Premier View. |
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| From whom will I receive the 25 basis points, and how will I receive them? |
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Your credit union will receive the 25 basis points as an entry to your Members United account semi-annually. |
