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C red it Union Opens at Duke University
On May I, a historic first will take place when the
Duke University federal credit union opens its doors.
The credit union will he run by faculty members and
employees to provide a convenient way to save money
through either payroll deduction or direct deposit.
Another feature of the credit union is that it will
also provide a convenient way of borrowing money at
a low interest rate. The purpose of the credit union
is to promote thrift among its members by offering
them a means of making safe and regular savings and
to enable members, when in need, to obtain loans at,
reasonable rates of interest for worthwhile things
such as auto loans, Christmas purchases, eta.
Duke University whicjh originated the study Of having
a credit union same 6 months ago endorses it and is
giving sane initial financial assistance to insure its
success. Any faculty member or employee who is inter
ested in hearing more about the federal credit union
should attend the organization meeting which will be
held in 'Page Auditorium in April 1968. If you can
not attend the meeting ask your supervisor to secure
an application blank for you. The credit union mail
ing address is Duke University Federal Credit Union,
Box 47SI, Duke Station, Durham, N.C. 27706.
The Credit Union was organized to promote thrift
among its members by offering them a means of making
safe and regular investments, and to enable them to
obtain moderate loans at reasonable rates. Although
it is not a part of Duke University, the corporation
has full University approval and is chartered and audi
ted by the Federal Government through the Bureau of
Credit Unions (a branch of the Department of Health,
Education and Welfare). The Credit Union will be
managed by a Board of Directors, a Credit Committee
and a Supervisory Committee, all of whom will be elec
ted for staggered terms of office by and from the mem
bership. Elections will be held at annual shareholders'
meetings each January. With the exception of the trea
surer, offices will receive no pay. Members themselves
will vote to decide dividend rates, as well as other
policy matters. Each member, regardless of the num
ber of shares he owns, will have one vote at the ann
ual meeting. To ensure that the management of the
Credit Union remains with its active membership, mem
bers must be present to vote,
Savings Plan
The new Credit Union will enable its members to pur
chase savings shares that will draw dividends each
January. The cost of each share is $5, but payments
on shares may be made in any amount and will accumulate
until a whole share is credited. Payments may be made
by check, money order, cash, or payroll deductions.*
Although dividends from the shares will depend on the
Credit Union's net profits, they should be equal to or
higher than bank rates. To enact automatic payroll
deductions, members fill out a payroll deduction card
specifying the amount to be deducted each month. The
deducted amount must be in multiples of $1 and may not
be less than $1 per month. When a member's savings
reach $5—one share—he becomes a shareholder and is
entitled to full membership privileges. Savings may
be withdrawn at any time as long as they are not
pledged as security for loans. If a member who holds
a loan totaling more than his shares wishes to with
draw his savings, he must first secure approval of
the Credit Committee and of any co-signers of his loan.
Generally, however, all that is required for withdraw
al is a request for remittance. Shares begin drawing
a dividend one month after the date that they are cred
ited to a member's account. Dividends are computed on
December 31, based on the number of months each $5
share has been on deposit. Shares which have been
withdrawn do not draw dividend for that year.
Added Security
Credit Union members will automatically receive an
additional form of security through a Life Savings In
surance plan. Broadly speaking, the plan doubles the
savings (up to $2,000) of a Credit Union member upon
his death. The only requirement for full coverage
under this plan is that the member be less than 55 years
old at the time he deposits his money, and that he be
able to perform the usual duties of his occupation at
that time. Money deposited after age 55 is insured as
follows: 7S% coverage if deposited between ages 55-59
inclusive; 50% coverage if deposited between ages 60-64
inclusive; 25% coverage if deposited between ages 65-69
inclusive. The amount of coverage depends upon the age
of the member at the time he makes his deposit, not at
the time of his death. No coverage is provided on de
posits made after a member attains age 70. Joint sav
ings accounts may be established in the Credit Union.
Since only the first named owner of such an account is
insured under the Life Insurance plan, optimal benefits
may be obtained by establishing more than one joint
account. A member, for example, may obtain dual cover
age by establishing a joint account naming himself first
and his wife second, and a second joint account naming
his wife first and himself second.
Loans
Credit Union members will be eligible to borrow money
at an interest rate of 1% per month on the unpaid bal
ance of the loan. Repayment schedules vary, depending
on the purpose and amount of the loan, and are subject
to the approval of the Credit Committee. Loans are re
paid through regular payroll deductions, but may be
paid off at any time. Deductions may be supplemented
by additional payments, thus effecting a savings on the
unpaid interest. The Credit Committee recommends that
loans be repaid under a level payment plan, under which
the member agrees to repay a stated amount monthly.
The amount of his repayment will include a small addi
tional sum for savings and interest. As the loan bal
ance decreases, the interest charge also diminishes,
and the difference is deposited in the member's share
account.
Subject to the Credit Committee's approval, up to $50
may be borrowed on the borrower's signature alone.
Larger amounts may be borrowed for Automobiles, etc.
upon presentation of acceptable security, to be deter
mined by the Credit Committee on the basis of the borro
wer's past borrowing record and character. Interest is
charged only on the amount of money owed, based on the
length of time it is owed. The Credit Union also car
ries, at no cost to its members as special protection
to members' families, protection insurance on all loans
except those made to persons over age 70 or to those
who are physically disabled. Under terms of the insur
ance, the unpaid balance of a loan is paid by the Credit
Union upon death (prior to age 70) or permanent disa-
bility (prior to age 60). Application blanks for join
ing the plan are available in the University Credit
Union Office.