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CU System Archive

CU System

Centrix judge terminates stay on insurance payments

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DENVER (6/27/08)--A U.S. Bankruptcy Court judge has denied a motion for extended relief from a stay on payments related to the Chapter 11 bankruptcy of Centrix Financial LLC, saying the issue is moot because the automated stay has expired. Centrix is a subprime auto lending service that serviced credit unions. Centrix Consolidated and Robert Sutton, former owner of Centrix Financial, filed the motion seeking relief June 20. According to the court documents, they sought authority for American International Speciality Lines Insurance Co., (AISLIC) to pay liability insurance proceeds under a policy for former officers and directors of Centrix for a policy period between Dec. 30, 2005, and Dec. 30, 2006. An automatic stay issued by the court earlier would not keep AIG from paying for defense costs incurred in other legislation related to Centrix's bankruptcy proceedings, Sutton and the others claimed in motion filed. They also argued they were entitled to relief from the automatic stay so AISLIC could pay defense costs. Judge Elizabeth E. Brown Wednesday issued an order denying the motion for relief from the stay, saying that the issue is moot. She noted that an amended plan of reorganization was confirmed May 16, and the assets of the estate were vested in the liquidating trust on June 2. The stay has terminated, she said, and is therefore moot. Centrix was placed under involuntary Chapter 11 protection on Sept. 15, 2006, by creditors IFC Credit Corp., Suntrust Leasing and Wells Fargo Equipment Finance Inc. They said Centrix owed them a combined $4.6 million in lease payments. Several days later Centrix and its affiliates filed voluntary petitions for Chapter 11 protection (News Now April 25). Credit unions and other entities have claimed millions against the company's assets. More than two-thirds of Centrix's portfolio is owned by roughly 230 credit unions throughout the nation. It underwrote more than 250,000 loans totaling $4 billion (News Now Sept. 6, 2002).

Tech Council Conference to spotlight compliance core processing

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MADISON, Wis. (6/27/08)--Credit union professionals at the CUNA Technology Conference in Williamsburg, Va., will hear speakers from seven of the credit union industry’s core data processors. The conference will take place July 30 to Aug. 2. Representatives from Open Solutions, Jack Henry and Associates, Ultradata, Fiserv, EPL, Fidelity Information Services and CU*Answers will be a part of a panel and answer questions from the audience. Topics addressed at the conference will include red flag rules that will take effect Nov. 1, payment card industry compliance, third party vendor agreements and security risk assessment per 12CFR748. For more information, use the link.

CU System briefs (06/26/2008)

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* DUBLIN, Ohio (6/27/08)--John Rowley, Ohio Credit Union League special projects manager, has announced his retirement after 36 years of service to credit unions. During his tenure he oversaw education outreach for credit union management, staff and volunteers, and is known statewide for his training and development of credit union staff. Most recently, Rowley served as the voice of small credit unions in the state. He was also instrumental in the success of the league's annual credit union convention, Zenith … * HARRISBURG, Pa. (6/27/08)--Paul Santoski, CEO of First Credit Union of Scranton (Pa.), died Wednesday morning at home after an illness, according to the Pennsylvania Credit Union Association (PCUA). Santoski was appointed to the Pennsylvania Credit Union Foundation Board in May. Funeral services will be Saturday at the Immaculate Conception Church, 801 Taylor Ave., Scranton. Viewing will be 4 p.m. to 8 p.m. tonight at the Vanston & James Funeral Home, Ash Street and North Irving Avenue. He is survived by his wife Judy and three sons (Life is a Highway June 26) …

CUs among the build brigade for Minnesota vets home

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WOODBURY, Minn. (6/27/08)--Hundreds of volunteers from local credit unions, the Credit Union National Association (CUNA), Republican National Convention staff, the National Journal Group and the St. Paul Building Trades Council gathered Thursday to construct a new home for injured Iraq war veteran Sgt. Marcus Kuboy in Woodbury, Minn.
Volunteers spread sand to build a home for injured Iraq war veteran Sgt. Marcus Kuboy during the Homes for Our Troops Build Brigade Thursday in Woodbury, Minn. From left are: Richard Gose, Credit Union National Association senior vice president of political affairs; Maria Cino, president/CEO of the 2008 Republican National Convention; and Mark Cummins, president/CEO of the Minnesota Credit Union Network. (Photo provided by the Minnesota Credit Union Network)
The project is part of the Homes for Our Troops Build Brigade. Homes for Our Troops is a nonprofit organization that builds homes for wounded soldiers. It is supported by the credit union movement. CUNA and the Minnesota Credit Union Network (MnCUN) are helping coordinate the project and raising funds for the effort. Volunteers will spend the weekend building the home. It will be specially adapted for Kuboy, 30, at no cost to his family and will be presented to him during the Republican National Convention. “People helping people is a fundamental credit union philosophy and this project is a great way for us to put our philosophy into action,” said Dan Mica, CUNA president/CEO. “Whether they are here in person volunteering their time or helping with fundraising efforts nationwide, our credit unions and their members are honored to participate in this special effort on behalf of a very deserving soldier.” “Owning your own home is the American dream and we are proud to be able to help make this dream a reality for Kuboy,” added Mark Cummins, MnCUN president/CEO. “This project allows credit unions in Minnesota and across the country to express their support of the sacrifices made by our military.” Ground was broken for the home in April. “Now we have the privilege of installing the doors, assembling the windows and building the roof with the generous help of the Kuboys’ new neighbors and friends,” said Suzanne Clark, president, National Journal Group. Kuboy was injured in March 2007 when an improvised explosive device detonated under the vehicle in which he was riding. A similar project in conjunction with the Democratic National Convention took place June 20-22 in Golden, Colo.

Arizonas CUs raise 510000 for CUs for Kids

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PHOENIX (6/27/08)--Arizona's credit unions raised $510,000 during 2007 to make life easier for hospitalized children at Phoenix Children's Hospital and Tucson Medical Center, according to the
Desiree Hoogerhuis, left, of the Arizona Credit Union League's Credit Unions for Kids steering committee, presents this year's traveling trophy to Gloria Mundy, CEO of Bashas' Associates FCU in Tempe, Ariz., for showing the highest percentage increase in money raised over last year for Arizona children's hospitals. (Photo provided by the Arizona Credit Union League)
Arizona Credit Union League. The league announced the total during a Credit Unions for Kids Recognition Lunch at its Annual Convention. Credit unions recognized in five asset categories for raising the most money and raising the most money per member were:
* Under $10 million in assets: Maricopa Santa Fe FCU, Phoenix, $1,916; * $10 million to $20 million in assets: Cochise CU, Willcox, $1,792; * $21 million to $99 million: Bashas' Associates FCU, Tempe, $8,589; * $100 million to $499 million: Arizona Central CU, Phoenix,$50,000; and * $500 million and over: Desert Schools FCU, Phoenix, $340,000.
One beneficiary of the funds raised is One Darn Cool School, a school at Phoenix Children's Hospital that helps hospitalized kids keep up with their studies while undergoing treatment. Arizona's credit unions are a major sponsor of the school, helping provide it books, classroom materials and teacher salaries. At Tucson Medical Center, credit unions' funds will support wellness programs, purchase life-saving medical equipment and provide health services for children. Arizona's credit unions have raised more than $3 million since 1996 for the Children's Miracle Network.

Lancaster CUs focus on Hispanic outreach

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HARRISBURG, Pa. (6/27/08)--Lancaster, Pa., credit unions are focusing their outreach on the Hispanic community. This week, Pennsylvania Credit Union Foundation Executive Director Joe Wambach traveled to Lancaster to monitor grants issued by the foundation and the National Credit Union Foundation to the Lancaster Consortium of Credit Unions Hispanic Outreach Project (Life is a Highway June 26). Wambach met with Denise Reinoso Wayman, regional manager, Mennonite Financial FCU, and Kent Hartzler, to look at the credit union’s efforts, the league said. Wambach and Wayman also visited Citadel FCU, Lancaster Red Rose CU, and Belco Community CU. Lancaster Red Rose CU is planning a branch at the Puerto Rican Cultural Center (Central Penn Business Journal June 26). Lancaster’s population is about 40% Hispanic, the newspaper said.