CUNA this afternoon sent the following “Action Alert” to all state Leagues, urging them to distribute to all credit unions in their states. In the message to the Leagues, CUNA pointed out that “This is a crucial vote for credit unions and we are looking for as many contacts to each Senator as possible. Passage of this amendment would reduce from 1% of insured shares to 0.15% of insured shares this year's cost of the corporate stabilization plan. Please be sure to let me know how many letters/calls/emails are sent from your state.”

The complete text of the “Action Alert” follows:

Issue: Deposit Insurance/Corporate Stabilization

Background: Later this week, the US Senate will consider S. 896, a bill to prevent mortgage foreclosures. (Unlike the House-passed version,
this bill does not contain judicial mortgage modification language.) Senator Chris Dodd (D-CT), the bill's sponsor, has offered a manager's amendment which would make permanent the deposit insurance increase for the National Credit Union Share Insurance Fund (NCUSIF) and help credit unions spread out NCUA premium assessment costs. Passage of this amendment would reduce from 1% of insured shares to 0.15% of insured shares this year's cost of the corporate stabilization plan.

Credit Union Concerns: This is a key vote for credit unions. The Dodd amendment would make permanent the temporary deposit insurance increase for the NCUSIF that Congress enacted last year. Keeping deposit insurance levels at $250,000 is an important step toward maintaining member confidence in credit unions. The Dodd amendment would also help credit unions spread out the cost of a premium assessment that has resulted from losses at wholesale corporate credit unions. By permitting credit unions to spread out premium costs over multiple years—as banks are permitted to do under current law—credit unions will be able to continue to provide loans and other services to their members during these difficult economic times.

Action Needed: Please 1.) send a message to both of your Senators TODAY urging them to support Senator Dodd's manager’s amendment to S. 896.
We encourage you to utilize CUNA's Grassroots Action Center,
http://capwiz.com/cuna/home/, where you can personalize and send a prewritten fax or email.
2.) Please also call or fax your Senator’s district office. (District office contact information can be found at
www.congress.org.)

KEY TALKING POINTS FOR CALLS

Please support Senator Chris Dodd’s manager’s amendment to S. 896.

This approach to funding the National Credit Union Share Insurance Fund will allow credit unions to continue to lend.

The Dodd Amendment would keep deposits insured at a level to maintain members’ confidence in credit unions.

Credit unions provide their members with low cost services in the local community, offering products our members have said they need.

Thank you for your participation in this Action Alert!