Letters to Congress

CUNA RENAISSANCE COMMISSION
RECOMMENDATIONS TO CUNA BOARD

Vision Statement on the Mission of Credit Unions
The purposes of credit unions are to promote the economic well being of all people through a credit union system which is cooperative, member-owned, not-for-profit, and therefore tax-exempt; to provide a secure financial alternative for all consumers, and to provide financial and related products and services to members.

• Financial institutions that conform to the above principles should not be subject to income tax, and must have their own unique regulatory and share insurance system.
• Cooperative financial institutions generate wealth and benefits for their members in a number of ways, and those members incur tax obligations as the benefit is distributed in the form of dividends.
• Credit unions include service to people of modest means in their business activities because of the inherent dedication of not-for- profit, cooperative financial institutions to such service, the traditions and values of credit unions, and the commitment of boards of directors to credit union values.

Vision Statement on Powers and Authorities
Credit unions, including corporate credit unions, must be able to engage in business activities necessary to meet the needs of and to provide opportunities to their members. The decision of what specific products and services should be offered must rest with the member/owners of the credit union. Credit unions must be able to accept shares and deposits on the terms defined by the credit unions, to make loans of any type appropriate to their membership, and to place funds in a wide range of investment alternatives to be competitive in the marketplace. Credit unions must have the ability to build alternative capital, subordinated to their share insurance fund, so that they have the financial base to offer these services and adjust to fluctuating economic conditions.

Vision Statement on Field of Membership
All consumers have the right to improve their financial well being through the services of not-for-profit financial cooperatives. Credit unions, through their boards of directors, must have the right to determine their own fields of membership to enhance safety, soundness and service.

Vision Statement on Regulation and Insurance
The government should regulate only those activities that are materially unsafe and unsound. In addition, regulators must ensure compliance with applicable laws. A regulatory environment must exist that advances the interests of credit unions by empowering them to provide the range of products and services they determine are important to their memberships. There should be a viable dual chartering system. The National Credit Union Administration (NCUA) and state supervisory authorities should act cooperatively. Actions taken by the NCUA Board on National Credit Union Share Insurance Fund (NCUSIF) matters should be separate from those taken on NCUA regulatory and supervisory matters. In addition, a private insurance alternative should be available to all credit unions.

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