On October 17, 2017, the Board of Directors of your credit union approved a proposition to merge with CommonWealth Credit Union and to convert from federal share (deposit) insurance to private insurance. You are encouraged to attend a special meeting of our credit union at the Kankakee County Federal Employees Federal Credit Union, 475 East Court Street, Room 203, Kankakee, IL 60901, on August 7, 2018, at 4:30 PM (CT) to address this proposition.
Purpose of Meeting
The meeting has two purposes:
- To consider and act upon a proposal to merge our credit union with CommonWealth Credit Union, the continuing credit union.
- To approve the action of the Board of Directors of our credit union in authorizing the officers of the credit union, subject to member approval, to carry out the proposed merger.
If this merger is approved, our credit union will transfer all its assets and liabilities to the continuing credit union. As a member of our credit union, you will become a member of the continuing credit union. On the effective date of the merger, you will receive shares in the continuing credit union for the shares you own now in our credit union.
Currently, your accounts have share insurance provided by the National Credit Union Administration, an agency of the federal government. The basic federal coverage is up to $250,000, but accounts may be structured in different ways, such as joint accounts, payable-on-death accounts, or IRA accounts, to achieve federal coverage of much more than $250,000. If the merger is approved, your federal insurance will terminate on the effective date of the merger. Instead, your accounts in the credit union will be insured up to $250,000 by American Mutual Share Insurance Corporation (American Share), a corporation chartered by the State of Ohio. The federal insurance provided by the National Credit Union Administration is backed by the full faith and credit of the United States government. The private insurance you will receive from American Share, however, is not guaranteed by the federal or any state or local government.
Other Information Related to the Proposed Merger
|IF THIS CONVERSION IS APPROVED, AND THE COMMONWEALTH CREDIT UNION FAILS, THE FEDERAL GOVERNMENT DOES NOT GUARANTEE YOU WILL GET YOUR MONEY BACK.|
The directors of the participating credit unions carefully analyzed the assets and liabilities of the participating credit unions and appraised each credit union’s share values. The appraisal of the share values appears on the attached individual and consolidated financial statements of the participating credit unions.
The directors of the participating credit unions have concluded that the proposed merger is desirable for the following reasons:
CommonWealth Credit Union, in business since 1951, offers a full range of financial products and services and has two branches to serve you. CommonWealth Credit Union offers all the services you currently have, along with other benefits, such as:
- Additional support staff and hours of operation
- Drive-thru and Saturday hours at both locations
- Online bill pay
- Mobile banking apps
- Telephone banking
- Mortgage and home equity loans
- Student loans
- VISA credit cards with rewards
- VISA gift cards and reloadable VISA cards
- Rewards saving and checking accounts
- Money Market accounts
The Board of Directors of our credit union believes the merger should include an adjustment in shares because of our credit union’s high net capital ratio; and therefore, if the merger is approved, each member will receive a one-time dividend equal to 2.0% of their aggregate share balances as of March 31, 2018, posted at the time of merger.
Kankakee Federal Employees FCU’s retiring manager, Janice Burmeister, will receive bonus and severance payments totaling $17,725 in recognition of her service.
The main office of the continuing credit union will be as follows:
- 563 Wm. Latham Drive, Bourbonnais, IL 60914
The branch offices of the continuing credit union will be as follows:
- 111 W. Cherry Street, Watseka, IL 60970
The current office of Kankakee County Federal Employees Federal Credit Union (located at 475 East Court Street, Kankakee, IL) will close at the time of merger.
The merger must have the approval of a majority of members who vote on the proposal, provided at least 20 percent of the total membership participates in the voting.
Enclosed with this Notice of Special Meeting is a Ballot for Merger Proposal and Conversion to Nonfederally-insured Status. If you cannot attend the meeting, please complete the ballot and return it to E Space Communications Inc., PO Box 3156, Dublin, OH 43016 by no later than 4:30 PM (CT) on August 7, 2018. To be counted, your ballot must reach E Space Communications Inc. by the date and time announced for the meeting.
By order of the Board of Directors.
Chairman of the Board of Directors
July 10, 2018