What is a
A Non-Member Deposit is an insured
deposit made by an organization or an individual who is not a member of the
credit union. The National
Federation of Community Development Credit Unions makes non-member deposits in
credit unions, as do banks, foundations, certain other credit unions and other
What is a Nominee
Nominee Deposit is an insured deposit made by NFCDCU acting as agent for a third
party investor. The third party
investor is the depositor of record and the beneficiary of the insurance.
What types of Credit Unions are
eligible to receive Non-Member and Nominee Deposits?
A credit union must have a
low-income designation from the National Credit Union Administration in
order to be eligible to receive non-member deposits from the private sector. The
credit union must also be in compliance with the current federal and/or state
regulations regarding the eligibility to receive "non-member deposits" (at
present, this limit is the larger of 20% of total shares and deposits or $1.5
million), or provide evidence of the waiver of this requirement by the
Who is eligible to receive
Non-Member and Nominee Deposits from the NFCDCU?
In order to be eligible for a
non-member deposit from NFCDCU, a credit union must be a regular (policy)
member in good standing. The
deposits must be insured by the NCUA or by an acceptable private insurer.
What are the normal terms for these
||subject to negotiation, but presently running between 2 ¾ to 3 ½ % payable
type of Documentation is signed?
The credit union must sign a Deposit
Agreement. After receiving the funds, the credit union issues a Deposit
(or Share) certificate and sends it to NFCDCU. When the credit union has received
a non-member deposit from NFCDCU the share certificate is issued to NFCDCU. When the deposit is under one of the
Federation’s nominee agreements, the share certificate is issued in the name of
the NFCDCU “as nominee” for that depositor.
What is required in order to
apply for a Non-Member Deposit or for a Nominee
and send in an application form, including the amount, and the description of
the proposed use of the funds.
Include the most recent NCUA Form 5300 and the most recent financial
statements since the last Form 5300.