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Midwest Corporate members move correspondent services to CUSO
BISMARCK, N.D. (7/21/10)--Some credit union members of Midwest Corporate FCU, Bismarck, N.D., have moved their correspondent services from the corporate to its credit union service organization, ProDraft Services, as part of the corporate's liquidation plan. ProDraft provides services such as depositing, check imaging and remote branch to credit unions. ProDraft will use Fifth Third Bank of Cincinnati, Ohio, to offer the services that the corporate provided, said Trudy Wise, Midwest Corporate CEO. Some credit unions have already switched to ProDraft, while others are using Bank of North Dakota, Bismarck, N.D. Many credit unions already have a relationship with the state-owned Bank of North Dakota through agricultural loans and other services. “The [member credit unions] have never looked at Bank of North Dakota as a competitor,” Wise added. She also noted that the bank was interested in working with the credit unions. Midwest Corporate’s board has a liquidation plan and will meet Thursday to accept the plan. Credit unions are aware of the liquidation plan, which will take about a year to finalize. Midwest Corporate has roughly $1 million in member capital, Wise said. Former Midwest Corporate CEO Doug Wolf is now a consultant for Midwest Corporate and ProDraft. “It is always difficult when a credit union, including a corporate credit union, has to consider liquidation,” said Mary Dunn, Credit Union National Association (CUNA) senior vice president and deputy general counsel. “CUNA’s Corporate Credit Union Next Steps Working Group is focusing on ensuring natural person credit unions will continue to have access to the payment, settlement, and investment advisory services they need as the corporate credit union system continues to adjust to the economy and later to the National Credit Union Administration (NCUA) upcoming corporate CU rule.” The report of the Task Force is expected before NCUA issues its final corporate CU rule, anticipated in mid-September.


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