The stock certificates are held in safekeeping at the credit union. The closing documents will include a stock security agreement naming the stocks as security on the loan and an assignment to the credit union, which gives the credit union authority to transfer the stocks in the event of default. Market value of the stock is monitored on at least a quarterly basis. If the loan becomes under secured, the credit union reserves the right to make a margin call, call the loan due. At that point, members can cash in the stock to pay off loan or offer additional security, usually in the form of another stock holding, to continue securing the loan.
Members can borrow from the credit union for any reason.
Any loan that is not secured is considered a personal loan. A line of credit is simply a loan with an established credit limit. The benefit to this type of loan is that the member can advance funds on this account up to the maximum credit limit as often as they like with no need to reapply. We offer four different types of products under this Plan. They are Ready Credit, Overdraft Protection, Share Secured, and Certificate Secured.