CUNA Board adopts plan to help credit unions deal with challenges of catastrophes

December 11, 2006

FOR IMMEDIATE RELEASE
Contact:
Pat Keefe, CUNA
(202) 508-6765; pkeefe@cuna.com

WASHINGTON -- The CUNA Board of Directors has adopted a national disaster preparedness plan for credit unions that coordinates essential and appropriate responses to significant financial, operational, legal, political and public relations challenges created by a national catastrophe or emergency.

The Credit Union System National Disaster Plan, adopted by the CUNA Board at its teleconference of Dec. 7, was created in the wake of various national disasters over the past several years, including Hurricanes Katrina, Rita and Wilma (in 2005), the Sept. 11, 2001 terrorist attacks; and the Oklahoma City bombing in 1995.

According to CUNA Chairman Juri Valdov, the plan’s purpose is to aid in coordinating the Credit Union System’s response to catastrophes or emergencies. In particular, he added, the plan is aimed at ensuring continued service to credit union members, and providing “uncompromised confidence” in credit unions and the system at large.

“Our hope is that this plan will be embraced by the credit union movement, as the plan presents solutions to lessons learned through past tragic events, and encompasses how players both within and outside of the credit union movement can work together to ensure the needs are met of credit unions, their members and their staffs in the aftermath of a disaster,” Valdov said.

Along those lines, the plan outlines the partnership of CUNA, the Leagues, credit unions, the Corporate CU Network, the Federal Reserve, CUNA Mutual, the National Credit Union Foundation, regulators (including NCUA and state agencies) and strategic business partners in working as a team to secure credit union services to members following a disaster.

“What’s very important about this plan is that it builds on the inherent strengths of the system’s nationwide structure and on the established platforms of individual credit union disaster plans,” Valdov added. “Credit unions should use this plan before and after a disaster. In fact, it is scalable – which means it can address a credit union’s needs during a minor business interruption, or a full-scale national disaster.

Florida Credit Union League President Guy Hood, who chaired the CUNA Disaster Preparedness Committee that developed the plan, noted that plan will be updated based on evaluation of future disasters as they occur. "We consider this to be truly a living document," Hood told the CUNA Board.

Serving on the committee with Hood were:

• Anne Cochran, president/CEO of the Louisiana Credit Union League;
• Judy DeLucca, president and CEO, New Orleans Firemen's FCU, Metairie, LA;
• Charles Elliott, president/CEO of the Mississippi Credit Union League;
• Dick Ensweiler, president/CEO of the Texas Credit Union League;
• Lou Jimenez, president/CEO of Montauk CU in New York, NY;
• Wendell “Bucky” Sebastian, president/CEO of GTE FCU in Tampa, FL;
• Henry Wirz, president/CEO of SAFE FCU in North Highlands, CA;
• Dennis Toda, Association of Corporate Credit Unions;
• Mike Retelle, CUNA Mutual Group;
• Steve Bosack, National Credit Union Foundation;
• Scott Earl, CUNA staff liaison.

(See attached list of “lessons learned” about disaster preparedness by the CUNA Disaster Preparedness Committee)

With its network of affiliated state credit union leagues, the Credit Union National Association (CUNA) serves more than 90 percent of America's 9,500 state-chartered and federally chartered credit unions, which are owned by more than 88 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information, go to www.cuna.org.

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