Credit Union: Charter Number: Year Chartered: Contact Person: Title: Telephone: ( ) Fax: ( ) . Mailing Address:

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1 National Federation of Community Development Credit Unions Community Development Investment Program for CDCUs PRIDE (PREDATORY RELIEF AND INTERVENTION) DEPOSIT APPLICATION Date: Credit Union: Charter Number: Year Chartered: Contact Person: Title: Telephone: ( ) Fax: ( ) Mailing Address: The Federation will consider deposits to assist the credit union to provide predatory relief or intervention loans in conjunction with programs established by the applicant, which are designed to provide alternatives to predatory and/or abusive Payday lenders, Tax-Anticipation lenders, or Automobile Title lenders. 1. Type of Program for which PRIDE is requested: Assistive Technology Maturity Requested (maximum: 4 years): Payday Maturity Requested (maximum: 2 years): Tax-anticipation Maturity Requested (maximum: 2 years): Automobile Title Maturity Requested (maximum: 4 years): 2. AMOUNT The limit for programs designed for Assistive Technology lending, to combat Payday lending, Tax- Anticipation lending, and Automobile Title lending is $100,000 combined. Amount Requested $ (Limit: $100,000) 3. LOW-INCOME DESIGNATION. The credit union must have a Low-Income Designation to PRIDEs. Have you been officially designated as a "low-income credit union" by the National Credit Union Administration or the equivalent State regulatory agency? Predatory Relief and Intervention Deposit (PRIDE) Application

2 Yes. (Attach a copy of NCUA or State Agency correspondence designating your credit union as low-income.) No, but application is pending. Expected receipt of the designation is 4. If the Federation awards you the amount you request, will you need a waiver from NCUA to accept these funds? (Waivers are usually required when a credit union has more than 20% or $1.5 million of its share deposits from non-members.) No Yes If yes, please explain: 5. Is the Applicant currently operating under a Letter of Understanding and Agreement (LUA) from the National Credit Union Administration? No Yes If yes, please provide a copy. 6. NARRATIVE: YOUR CREDIT UNION'S PLANS. Briefly describe the neighborhood or community you serve: its special problems, its needs, and its goals. Describe your credit union's accomplishments in serving your community, your overall growth plans and how, specifically, the Federation deposit will help your credit union overcome the abuses of predatory lending in your community. (Attach separate page) 7. Please estimate the percentage of your loan dollars used for the following purposes: % new or used automobile purchase % small, minority, or women-owned business % personal (medical, household, etc.) % education % nonprofit organizations % anti-predatory lending programs % other type: ( ) 8. Please estimate the percentage of your membership that falls within the following categories: Asian-American % Female % Black % Male % Latino/Hispanic % Public Assistance Recipients % Native American White % % Predatory Relief and Intervention Deposit (PRIDE) Application Page 2

3 9. Please estimate the percentage of your membership that falls within the following income levels: % Less than $10,000 % Equal to or greater than $10,000, but less than $19,999 % Equal to or greater than $20,000, but less than $29,999 % Equal to or greater $30,000, but less than $39,999 % Equal to or greater than $40,000 Please check one: The above income levels are estimates of individual household income. 10. REQUIRED SUPPORTING DOCUMENTATION. Please enclose copies of the following documents with your application: For Assistive Technology: A thorough description of the community s assistive technology needs. For all other uses: A detailed description of the existing predatory relief or anti-predatory lending program of the applicant credit union. Is it designed to combat Payday lenders, Tax-Anticipation lenders, and/ or Automobile Title lenders. Please include eligibility requirements, marketing strategy and materials, underwriting criteria, rates and terms of loans, credit union s track record, portfolio limits (e.g., maximum amounts of this type of loan to be held in portfolio) and other limits and collection and recovery policies and procedures. a. Describe your credit union s anti-predatory lending program, including information on when it was created, its purpose, accomplishments and challenges in serving your members. b. Also include information on your anti-predatory loan portfolio (number of loans, amount, type of loans, delinquency and charge-off information, and whether your credit union participates in a loan guarantee program). Or, if the program is not yet operating: Please provide a plan for introducing the new program, including descriptions of product(s), eligibility guidelines, marketing materials, rates, underwriting criteria, portfolio limits, etc. a. Your credit union s Financial Education Program. What is the credit union doing with regard to preparing potential victims to avoid predatory lending and making them aware of alternative financing sources? Predatory Relief and Intervention Deposit (PRIDE) Application Page 3

4 b. The lending policies applicable to your overall portfolio and the lending policies for your anti-predatory lending program. Please also include your policies regarding allowance for loan losses. c. Business Plan and Financial Projections d. Delinquency and Charge-Offs Report for anti-predatory loan portfolio. Please also submit information your anti-predatory lending portfolios, if applicable. Include details such as number of loans, purpose, delinquency and charge-off information. e. Resumes of key management personnel and lending officer(s). f. The most recent monthly financial and statistical report of the credit union, including loan and delinquency information. g. Copies of two most recent audited fiscal financial statements certified by independent auditor. h. Any additional material that you feel will help us to better understand your credit union, your community, and your anti-predatory lending programs. This may include brochures, newspaper articles, etc. 11. REPORTING REQUIREMENTS Should the Federation award the applicant a PRIDE deposit, the credit union will be required to submit semi-annual reports that include detailed statistics about all loans made partially collateralized by the Federation PRIDE. This will include the identity, nature, type, purpose, loans refinanced, whether loan made was a repeat request, and borrower profiles. Additionally information about the performance of the overall portfolio and the anti-predatory lending program (including rates, terms, collateral, co-makers, credit scores, debt ratios, and credit histories) and other information that may be needed by the Federation will be required. 12. ADDITIONAL CONTACT INFORMATION. Please provide contact information for all of the following officers: CEO / President / Manager Name: Signature: Home Phone: ( ) Cell Phone: ( ) Personal Home Address: Predatory Relief and Intervention Deposit (PRIDE) Application Page 4

5 Board President / Chair Name: Signature: Home Phone: ( ) Cell Phone: ( ) Personal Home Address: Board Secretary Name: Signature: Home Phone: ( ) Cell Phone: ( ) Personal Home Address: I certify that the information in this application is accurate to the best of my knowledge. Name Title Date THANK YOU FOR YOUR COOPERATION Please return completed applications to: National Federation of Community Development Credit Unions Attn.: Community Development Investment Program 39 Broadway, Suite 2140 Predatory Relief and Intervention Deposit (PRIDE) Application Page 5

6 New York, NY Tel: (800) or (212) Fax: (212) If you have any questions, please contact the Community Development Investment Program at (800) or (212) Predatory Relief and Intervention Deposit (PRIDE) Application Page 6