ALEXANDRIA, Va. (10/11/13)--Northern Eagle FCU, Minnesota, a multiple common-bond credit union that will serve the 4,900 members and employees of the Bois Forte Band of Chippewa, is now the first new federal credit union of 2013. Approval of the credit union's charter was announced by the National Credit Union Administration Thursday.
"It's always a great day when a new credit union is formed, particularly in an underserved community," said Bill Cheney, President/CEO of the Credit Union National Association. "We hope this is the first of many new credit unions created in 2013."
Every American deserves access to affordable financial services, but many Native Americans unfortunately lack access to federally insured financial services providers or only have access to predatory lenders," NCUA Chairman Debbie Matz said in an agency statement. "The chartering of Northern Eagle FCU addresses a real need," and the credit union "has the potential to play an important role in improving the lives and financial well-being of Northern Minnesota's Chippewa communities," she added.
The low-income designated credit union (LICU), which is sponsored by the Bois Forte Band of Chippewa Reservation Tribal Council, is scheduled to open in December.
Members will be able to access regular share accounts, unsecured loans, other secured loans, share drafts, credit repair loans, prepaid debit cards, share certificates, anti-predatory loans, money orders, club accounts, share secured loans, cashier checks, non-member deposits, auto loans and direct deposit within the first year of the credit union's operation. The credit union also plans to offer online banking services, and financial literacy education will also be an area of emphasis.
The LICU designation brings benefits that include the ability to accept supplemental capital and an exemption from the 12.25%-of-assets MBL cap under certain circumstances.
For more on the new credit union, use the resource link.