National Council of Postal Credit Unions

Emergency Cash NetworkMaster Agreement

The National Council of Postal Credit Unions hereby establishes an Emergency Cash Network for credit unions belonging to this Council. The purpose of this network is to permit a member of one credit union to withdraw funds and/or request open-end loan advances at another credit union of which he is not a member, provided both credit unions are participants under this Master Agreement.

1. Credit unions wishing to become participants in the Emergency Cash Network shall execute the Affiliation Agreement, which is attached hereto as Exhibit A: Affiliation Agreement. Execution of the Affiliation Agreement shall cause the credit union so executing to be bound by all the terms and conditions of this Master Agreement.

2. A member of a participating credit union (hereinafter called the Home Credit Union) may request any other participating credit union (hereinafter called the Disbursing Credit Union) to advance him funds either in cash or by check. The minimum advance which a member may request shall be $50.00. Said advance shall be requested by means of an Emergency Cash Network Funds Advance Voucher, which is attached hereto as Exhibit B: Share Account Withdrawal and Exhibit C: Open-end Loan Advance. The Emergency Cash Network Funds Advance Voucher will constitute either the member’s authorization of a withdrawal from his share account in the Home Credit Union or the member’s agreement to repay the money borrowed pursuant to his open-end loan account with his Home Credit Union, as indicated by the Disbursing Credit Union’s filling in the applicable information on the Emergency Cash Network Funds Advance Voucher. The Disbursing Credit Union shall act as the agent of the Home Credit Union in making such advances.

3. It shall be the responsibility of the Disbursing Credit Union to cause the Emergency Cash Network Funds Advance Voucher to be properly filled in and completed and signed in triplicate by the credit union member requesting the advance. One copy of the Emergency Cash Network Funds Advance Voucher shall be for the Disbursing Credit Union, one for the Home Credit Union, and one for the credit union member. The Disbursing Credit Union shall take all reasonable precautions to prevent a forgery or other fraudulent or unauthorized transaction. The Disbursing Credit Union shall have the right, in its discretion, to refuse to make any advance to the member requesting it for any reason.

4. It shall be the responsibility of the Home Credit Union to maintain records of remote funds advances in order to insure that such transactions are properly entered on its member’s account either as a withdrawal or an open-end loan advance. The Home Credit Union shall also have full responsibility to secure from its members properly executed loan documents for open-end loan accounts and for making all necessary disclosures pursuant to State and Federal Consumer Credit Protection Acts (Truth-in-Lending) and for the compliance of its open-end loan accounts with other applicable state and federal laws.

5. Upon completion and execution by the member of the Emergency Cash Network Funds Advance Voucher, an employee of the Disbursing Credit Union shall telephone the Home Credit Union to secure authorization to make the advance. The employee of the Disbursing Credit Union shall give to the Home Credit Union, over the telephone, the name, share account number or open-end loan account number of the member requesting the advance, the amount of advance requested, and any other relevant information about the transaction requested by the Home Credit Union.

6. It shall then be the responsibility of the Home Credit Union to check its member’s share balance to determine if there are sufficient funds in the share account to cover the requested withdrawal or to check its member’s open-end loan file to determine whether to authorize an addition to the open-end loan in the additional amount requested. Upon completion of such checking and verification as deemed necessary, the Home Credit Union shall inform the employee of the Disbursing Credit Union over the telephone that the advance is either authorized, not authorized, or is authorized in a lesser amount than requested. The Home Credit Union shall have the right to refuse to authorize an advance for any reason whatsoever. The Home Credit Union shall keep a record of the transaction on the Emergency Cash Network Telephone Request, which is attached hereto as Exhibit D: Telephone Request.

7. If the advance is authorized, the Disbursing Credit Union shall complete the transaction by advancing the requested funds to the credit union member either in cash or by check. If the advance is authorized in a lesser amount, the Disbursing Credit Union shall complete the transaction by advancing no more than the lesser amount specifically authorized to the credit union member either in cash or by check. If the advance is not authorized, the Disbursing Credit Union shall not advance any funds whatsoever to the credit union member.

8. Upon completion of the advance, the Disbursing Credit Union shall immediately mail or transmit by facsimile machine one copy of the Emergency Cash Network Funds Advance Voucher to the Home Credit Union.

9. Immediately upon receipt of the Emergency Cash Network Funds Advance Voucher, the Home Credit Union shall mail a check to the Disbursing Credit Union for the amount of the funds actually advanced. The only grounds upon which a Home Credit Union can refuse to pay an Emergency Cash Network Funds Advance Voucher shall be that the Disbursing Credit Union has not actually advanced the funds as claimed, or the disbursement is not authorized by the Home Credit Union.

10. Each credit union shall obtain written assurances from their bonding company that coverage extends to the correspondent activity. These assurances are necessary to comply with section 701.20(b) of NCUA's Rules and Regulations which imposes a duty on the Board of Directors to; "at least annually, carefully review the bond and insurance coverage in force in order to ascertain its adequacy in relation to risk exposure."

11. The Home Credit Union shall assume all responsibilities for any loss arising as a result of the transaction for any reason whatsoever, including fraud, forgery or other defalcation practiced by or upon the Disbursing Credit Union, with the exception that the Disbursing Credit Union fails to act reasonably to fulfill its contractual duty, or the disbursement is not authorized by the Home Credit Union.

12. The Disbursing Credit Union may charge a service fee of $5.00 for processing the Emergency Cash Network Request and as reimbursement for long distance telephone charges and other expenses. The service fee may be waived at the discretion of the Disbursing Credit Union. If the advance is a share account withdrawal, the Home Credit Union will charge the service fee to its member’s account. If the advance is under the member’s open-end loan account, the Home Credit Union will not charge its member, but will include the service fee within its regular interest charge as a cost of acquiring a new loan. The Home Credit Union shall add the service fee to the amount of the check it mails to the Disbursing Credit Union as reimbursement for the funds advanced.

13a. This agreement is subject to the Federal Credit Union Act and the rules and regulations of the National Credit Union Administration.
13b. This agreement shall be governed and interpreted by the laws of the State in which the Home Credit Union is located.
13c. This Master Agreement may be amended by a written instrument subscribed by the National Council of Postal Credit Unions. Such amendment shall be effective thirty days after written notice of the amendment is mailed to all participating credit unions.
13d. Any participating credit union may terminate its Affiliation Agreement by thirty days written notice to the National Council of Postal Credit Unions, but such termination shall not affect the rights of any party with respect to any transactions hereunder actually completed prior to such termination date.

IN WITNESS WHEREOF, this agreement has been executed by the National Council of Postal Credit Unions this 10th day of August 1989.

NATIONAL COUNCIL OF POSTAL CREDIT UNIONS

 

By:   Robert Spindler Signature