National Council of Postal Credit Unions

Emergency Cash NetworkGeneral Information

The Credit Union Remote Funds Access System is authorized pursuant to the Incidental Powers clause of the Federal Credit Union Act. The purpose of this program is to allow credit unions through mutual agreements to provide their members with the ability to withdraw funds and/or request open-end loan advances through the facilities of another credit union located outside the normal operating boundaries of the credit union to which the member is associated.

Implementation

Implementation of a plan of this nature involves the following agreements and documents:

Inter-Credit Union Agreement:

A legal document will be provided which will spell out agreements between participating credit unions relative to disbursement, reimbursement, liabilities, responsibilities, etc. Generally, this agreement will be similar to an open-end note form between credit unions with the amounts being established based upon remote funds accessed by credit union members.

Funds Advance Voucher:

As evidence of such advance provided to credit union members, a Funds Advance Voucher indicating the name, date, amount, whether a withdrawal or open-end loan advance, by whom funds availability were verified, etc., will be provided and signed by each credit union member requesting such advance.

Inter-credit Union Reimbursement

Immediately upon verification and notification of the disbursing credit union, a check made payable to the disbursing credit union will be forwarded. In turn, the disbursing credit union will immediately forward a voucher verifying and indicating validation of the disbursement. The disbursing credit union will immediately record the disbursement as accounts and/or notes receivable from the credit union for which the funds are being disbursed. Upon receipt of the check, this entry will be immediately reversed. No bookkeeping entries will be necessary on the records of the member’s basic credit union since a check payable to the disbursing credit union will be drawn directly from the account or added to the open-end loan balance of the member.

Example:

John Jones, member of the ABC Federal Credit Union, which is located in Boston, Massachusetts, is either on a vacation or business trip in Atlanta, Georgia. He finds that he is in need of funds for personal reasons and is aware of the fact that the XYZ Federal Credit Union in Atlanta has an Inter-Credit Union Agreement with his credit union in Boston.

Mr. Jones goes to the XYZ Federal Credit Union and requests a $100 share withdrawal or open-end loan cash advance. The XYZ Federal Credit Union asks Mr. Jones to complete the Funds Advance Voucher which includes name, account number, etc., and immediately calls the ABC Federal Credit Union to verify funds availability, etc., recording the name of the person who authorized this disbursement.

The XYZ Federal Credit Union disburses a check, or cash, in the same amount to Mr. Jones, recording this as an account or notes receivable from the ABC Federal Credit Union, mailing or faxing the original copy of the Funds Advance Voucher to them. Upon receipt of this voucher, the ABC Federal Credit Union issues a check payable to the XYZ Federal Credit Union in the amount of Mr. Jones' advance.

In order to recover station-to-station direct dialing telephone expenses related to a transaction of this nature, a charge of $5.00 will be made to the member requesting such disbursement. In the event that toll-free lines, etc., are available, this charge may be waived at the discretion of the disbursing credit union.

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