On August 29, 2017, the Board of Directors of your credit union approved a proposition to convert from federal share (deposit) insurance to private insurance. You are encouraged to attend a special meeting of our credit union at 8930 Waukegan Road, Morton Grove, IL 60053, on March 22, 2018 at 5:30 p.m. (CT) to address this proposition.
Purpose of Meeting
The meeting has two purposes:
- To consider and act upon a proposal to convert your account insurance from federal insurance to private insurance.
- To approve the action of the Board of Directors in authorizing the officers of the credit union to carry out the proposed conversion.
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 conversion is approved, your federal insurance will terminate on the effective date of the conversion. 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.
|IF THIS CONVERSION IS APPROVED, AND THE NORTHWEST COMMUNITY CREDIT UNION FAILS, THE FEDERAL GOVERNMENT DOES NOT GUARANTEE YOU WILL GET YOUR MONEY BACK.|
The board of directors has concluded that the proposed conversion is desirable for the following reasons.
American Share is a credit union-owned private organization whose only business is to provide deposit insurance to credit unions. American Share insures each separate account of an individual up to $250,000. Therefore, each member’s individual accounts, whether a share certificate of deposit, IRA, regular savings account, or checking (share draft) account, are all separately insured to $250,000. American Share has operated successfully for over 43 years, and no credit union member has ever lost money in an American Share-insured account. Furthermore, American Share is an authorized issuer of share insurance in the state of Illinois. The company is also licensed and regulated by both the Ohio Department of Insurance and the Ohio Department of Commerce. The company is also subject to annual independent audits and actuarial reviews attesting to the accuracy of the company’s financial results.
The proposed conversion will result in the following one-time cost associated with the conversion: $14,000. The conversion 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. If you cannot attend the meeting, please complete the ballot and return it to E Space Communications Inc., PO Box 3156, Dublin, Ohio 43016, by no later than 5:30 p.m. (CT) on March 22, 2018. To be counted, your ballot must reach E Space Communications Inc. by that date and time.
By order of the Board of Directors.
Bohdan Pleshkewych, Chairman
February 22, 2018