Three KY credit unions announced as 2021 Partners in Philanthropy honorees 

Louisville Business First's Partners in Philanthropy is an annual recognition program spotlighting local businesses in Greater Louisville and their donations and partnerships with charities. 

This year, they are recognizing 30 area companies for their cash contributions to nonprofits in 2020.  Among these companies was one local credit union, Class Act Federal Credit Union. 

Additionally, Louisville Business First will recognize innovative partnerships between Louisville-area and nonprofits.  

• Abound Credit Union with their efforts with USA Cares.
• Park Community Credit Union, Oxmoor Auto Group, Apprisen and Goodwill Industries with their partnership on the Goodwill Cars to Work program. 

These companies also will be honored at a virtual awards ceremony on August 5 with more details to come. 

Congratulations to these Kentucky credit unions!

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ECTC, Abound Partnership Expands to Teach More Students About Money Management  

Elizabethtown Community & Technical College (ECTC) and Abound Credit Union are continuing to provide valuable financial education to a growing number of students through a series of engaging, virtual events and interactive, online modules.  

This summer, Abound will be included in freshman orientation to share how students and faculty can access no-cost financial education resources. ECTC’s financial education portal, mobile-friendly 5-minute financial tips and YouTube videos will help students create a budget, learn about credit cards, credit scores, taxes, debt management and much more. To date, over 3,700 ECTC users have accessed Abound’s online financial education program.  

Abound Credit Union experts kicked off the Adulting 101: Managing Your Money series this fall with three interactive webinars including a Financial Education Bootcamp. In addition to the educational webinars, First Year Experience 105 students and Business students at ECTC completed Abound’s financial education modules this academic year. The online modules prepare college students to make smart financial decisions and adopt responsible money management habits that can benefit them for life.   

“Our partnership with ECTC is important because we’re giving young adults the tools they need to change their financial lives and make more possible for their families for years to come,” says Ray Springsteen, President & CEO of Abound Credit Union.  

In addition to the financial education and training provided for youth and young adults, Abound Credit Union offers free online learning tools and resources for Kentuckians of all ages at www.aboundcu.com. 

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Commonwealth Credit Union Opens Region's First Make-A-Wish Toy Closet 

Giving a critically ill child hope, optimism, and joy in place of uncertainty, fear, and sadness is exactly what Make-A-Wish does every time a wish is granted. To help ease those feelings, children are paired with a volunteer to help them walk through the process. To serve as an ice breaker, the volunteer brings a special toy to give to the child that they can keep with them throughout their journey. 

To help aid with this, Commonwealth Credit Union has opened the region’s first Make-A-Wish Toy closet at their Hamburg branch. The credit union collected over 400 donated toys to stock the closet. To celebrate this momentous occasion, Commonwealth Credit Union hosted a ribbon-cutting and invited 4 Wish Kids to attend. 

They were so excited to see the toy closet, and each child left with a giant gift basket of toys and games.  

“To watch a child, enter the Wish program, receive treatment, and then graduate to lead a life where they are not only surviving but thriving, is what Bettering Lives is all about,” said Karen Harbin, Commonwealth Credit Union President/CEO. “As the 2021 Wish Chair, I am thrilled that we can provide a home for the toys that start these children on their Wish journey.” 

Faith Hacker, Make-A-Wish Ohio, Kentucky & Indiana Senior Development Officer said, “Our relationship with Commonwealth Credit Union is especially meaningful because we are united in our passion to inspire hope in the lives of these special young children. At Make-A-Wish, we believe that when a wish is granted, it creates hope and strength not only for the wish child but also for the wish family and the community.”

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Park Community CU Awarded CDFI RRP Grant 

Park Community Credit Union is excited to announce that they have been awarded $1,865,265 in COVID-19 relief funds through the CDFI Rapid Response Program (CDFI RRP). 

U.S. Treasury Awards $1.25 Billion to Support Economic Relief in Communities Affected by COVID-19
On June 15, 2021, the U.S. Department of the Treasury awarded $1.25 billion in COVID-19 relief funds to 863 community development financial institutions (CDFIs). The awards were announced by Vice President Kamala Harris at the White House with Treasury Secretary Janet L. Yellen. The grants will be made through Treasury’s CDFI Rapid Response Program (CDFI RRP) and will provide necessary capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved communities. 

“In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that today’s announcement might lead to an additional $10 billion in investment,” said Secretary Janet Yellen. “The President and the Vice President ran on a very ambitious agenda – ‘Build Back Better,’ unwinding systemic racism, creating an economy that works for everyone. I believe this is what that looks like in practice. By channeling more capital into CDFIs, we are translating those ideals into reality.”  

The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic. The CDFI RRP was authorized by the Consolidated Appropriations Act, 2021 (Pub. L. 116-260).  

“These awards provide CDFIs with an unprecedented level of flexible capital to help distressed and underserved communities across the country take meaningful steps towards recovering from the debilitating economic impacts of the COVID-19 pandemic,” said CDFI Fund Director Jodie Harris. “CDFI RRP awards will enable CDFIs to help businesses keep their doors open, help families make ends meet, and help maintain important community facilities during this difficult time.” 

CDFI RRP awards will reach a wide variety of low-income communities across the United States impacted by the COVID-19 pandemic. The awardees include CDFIs that serve rural, major urban, and minor urban markets. 

A full list of the $1.25 billion in awards announced nationwide today is available here.

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Compliance Bulletin: Responding to a Power of Attorney Agent’s Request

To Add or Change a Right of Survivorship or Beneficiary Designation

Credit unions sometimes are asked by an agent under a power of attorney (POA) to have a person added as joint owner to the account of a member (the principal under the POA). Or a POA agent may seek to add or change a payable-on-death or other beneficiary designation on the member’s account. In some cases, the agent may seek to add himself or herself, or a family member, as joint owner or beneficiary on the account. What is significant in all these situations is that the agent is seeking to act in a way that will create (or take away) a right of survivorship in the member’s account upon the member’s death. Naturally this raises concerns. How should the credit union respond?

The Uniform Power of Attorney (KRS 457.010 et seq.), as adopted in Kentucky, has rules that address whether an agent may create or change a right of survivorship or beneficiary designation.  See KRS 457.245. It is helpful to break down these rules through a step-by-step process, focusing on: i) what the POA says, and ii) the relationship of the POA agent to the member on whose behalf the agent purports to act:

1. In all cases, the POA must expressly grant the agent the authority to create or change rights of survivorship or beneficiary designations. The first question is whether the POA has language granting such authority to the agent. If it does not, then the agent is prohibited from creating or changing survivorship rights or beneficiary designations for anyone. If it does contain such language, then the following rules apply.
2. Even if the POA contains the grant of authority to create or change rights of survivorship or beneficiary designations, if the agent is not an ancestor, spouse, or descendant of the member, such agent may not create in the agent, or a person to whom the agent owes an obligation of support, any survivorship or beneficiary rights, unless the grant of authority expressly says the agent may create such survivorship or beneficiary rights in himself or herself or in a person the agent supports. In other words, if the POA merely says the agent shall have the authority to create or change rights of survivorship and beneficiary designations, without more, the agent may not rely on that authority to make any such change that will benefit the agent personally or someone the agent supports. But if the POA says the agent may exercise such authority by creating a right of survivorship or beneficiary designation in the agent or someone the agent supports, the agent may do so.
3. But if the agent is an ancestor, spouse, or descendant of the member, the general grant of authority described in 1 above is sufficient to give such agent the authority to create in the agent, or someone the agent supports, a right of survivorship, whether as joint owner or beneficiary. Thus, the POA does not need to expressly state that the agent has the right to name himself or herself (or someone he or she supports) as joint owner or beneficiary as long as the agent is: i) authorized under the POA to create or change rights of survivorship or beneficiary designations, and ii) the agent is an ancestor, spouse, or descendant of the member. 

It may be helpful to follow a process like this when confronted with such a request. Please direct any questions or comments to the Compliance Hotline.

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NCUA to Host 2021 Diversity, Equity, and Inclusion Summit for Credit Union System Stakeholders

The National Credit Union Administration will host credit union leaders, credit union trade and support organizations, and diversity and inclusion professionals during the NCUA’s second Diversity, Equity, and Inclusion (DEI) Summit. This three-day event will take place virtually Nov. 2–4, 2021. 

The NCUA’s 2021 DEI Summit will provide credit union industry professionals who are committed to advancing diversity, equity, and inclusion a forum to share best practices, address challenges to advancing diversity, and learn how the NCUA can support the industry in its efforts. To address today’s most pressing diversity, equity, and inclusion issues, the theme of this year’s event is “From Intention to Action.” 

“This will be a powerful and thought-provoking conversation on the business case for diversity, equity, and inclusion within the credit union system and beyond,” NCUA Chairman Todd M. Harper said. “Embracing the principles of diversity, equity, and inclusion is vital to the continued health and success of the credit union system because it leads to better consumer protection, greater innovation, improved solutions, and increased membership. I look forward to joining in this timely and critical conversation.” 

Chairman Harper, along with Vice Chairman Kyle Hauptman, Board Member Rodney Hood, and other prominent keynote speakers will address attendees. Summit topics include: How to Get Started in the DEI Journey; How to Increase Gender Diversity in the C-Suite; Facilitating Courageous Conversations Around Tough Topics; Diversity in the Boardroom; and Economic Equity and Justice. 

There is no charge for this event, and formal registration will begin soon. Interested participants can sign up online to receive notifications about the Summit on the NCUA’s website. 

To learn more about the NCUA’s DEI Summit 2021, please visit the NCUA’s website.

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