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 investors. 

What is a Nominee Deposit?

A 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 NCUA.

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 deposits?   

What 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 Deposit?