October 23, 2008

 

 

Dear Carolina Mountains Credit Union Members:

 

In these challenging days for the national economy, we can relieve you of one potential concern, and this is the safety of Carolina Mountains Credit Union and the money in your accounts here.

 

First, your accounts are backed by the National Credit Union Share Insurance Fund (NCUSIF), a fund maintained by the U.S. Treasury and administered by the National Credit Union Administration (NCUA). Federal insurance protects your money in share savings, share draft/checking, share certificates, trust, and retirement accounts.

 

NCUA coverage is to credit unions as FDIC or Federal Deposit Insurance Corporation, coverage is to banks. Both funds are backed by the full faith and credit of the U.S. government.

 

And now, passage of the Emergency Economic Stabilization Act of 2008 increases NCUA coverage from $100,000 to $250,000. The increase is temporary, taking effect from October 3, 2008 until December 31, 2009. Funds may be insured for even more than the $250,000, depending on how you establish your accounts.

 

Second, Carolina Mountains Credit Union operates with a safety net of capital that helps us weather temporary setbacks. And, we maintain an “allowance for loan losses.” This additional cushion anticipates losses when some members fail to repay loans.

 

Third, Carolina Mountains Credit Union is examined regularly by the North Carolina Department of Commerce, Credit Union Division. The exam findings are shared with NCUA and they make sure that we are engaging in safe and sound operations.

 

We at Carolina Mountains Credit Union can assure you that your money is safe.

 

Best Regards,

Diane B. Rogers, CEO