Proudly serving
the members of the
Environmental Conservation Organization, Inc.
FAQs
-
What is the Environmental Conservation Organization, Inc. (ECO)?
Why should I join the Freedom21 Federal Credit Union?
Who can join the Freedom21 Federal Credit Union?
Where does the credit union get the money to make loans?
Who runs the Freedom21 Federal Credit Union?
Who elects the Board of Directors?
- What is a Member?
- Credit unions are cooperatives, not-for-profit financial
institutions, chartered by the state or federal government. They are
owned and controlled by their members, and organized to promote thrift
and provide credit to those who belong. These owners are
called "members."
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- Why Join a Credit Union?
- Credit unions only serve members in the fields of membership, usually associations, employee groups, or communities named in their charters. As not-for-profit financial services cooperatives, credit unions return earnings to their members in higher savings rates, better services, and lower borrowing rates, while the Board of Directors are volunteers elected by members.
- Banks or Savings and Loans are financial institutions chartered
by the state or federal government, which accept deposits and makes
loans for a profit. They are owned by groups of stockholders, whose
main interest is to earn a healthy return on their investments. In
contrast, credit unions exist to serve their member-owners, the people
who save and borrow there.
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- What is the Environmental Conservation Organization, Inc. (ECO)?
- ECO is a not-for-profit, membership organization founded in 1988,
and recognized by the Internal Revenue Service as a 501(c)(4)
organization. Its mission is to promote environmental stewardship
while advancing the principles of freedom, especially in the
protection of private property rights and responsible resource use.
We work to achieve our goals through educational publications, web
sites, conferences, and through public policy advocacy at every level
of government. ECO neither solicits, nor accepts government grants.
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- Why should I join the Freedom21 Federal Credit Union?
- ECO members care about private property rights and responsible
resource use, and are a part of a larger movement, consisting of
organizations that are chronically underfunded, despite the best
efforts of members who pay membership fees and contribute to their
favorite organizations. The Freedom21 Federal Credit Union is
designed to help participating organizations build an endowment
account which will continue to pay cash dividends in perpetuity.
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- Who can join the Freedom21 Federal Credit Union?
- The field of membership identified for approval by the National
Credit Union Administration is the dues-paying membership of the
Environmental Conservation Organization, Inc. Both individual and
organization members will be eligible for membership in the credit
union. Once an ECO member has become a member of the credit union, the
immediate family of the credit union member is also eligible to join
the credit union. The immediate family is defined to be: spouse,
child, sibling, parent, grandparent, grandchild, stepparents,
stepchildren, stepsiblings, and adoptive relationships.
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- Why does a member of another organization have to become a member of ECO, before joining the Freedom21 Federal Credit Union?
- The law requires a defined and verifiable "Field of Membership" to
be served by the credit union. The field of membership must share a
"common bond" evidenced by membership in the sponsoring
organization. Organization members that wish to become "Participating
Organizations" eligible to establish endowment accounts, must have a
mission statement that is consistent with ECO's mission statement, and
must participate in Freedom 21 activities. This is a requirement
imposed by the credit union law, and it is carefully monitored by
federal regulators.
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- Where does the credit union get the money to make loans?
- The capital used to make loans comes from the deposits made by
members. Members may deposit into basic share accounts, or into
certificates of deposit. Dividends are paid on basic share accounts;
certificates of deposits earn a fixed interest rate based on the time
the deposit is held, and the current interest rate at the time of
deposit.
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- What is a share account?
- A share account is a savings account. Every credit union member is
required to subscribe (deposit the equivalent of) at least one share,
which has a par value of ten dollars ($10.00). Every additional $10
deposited into the share account equals another share. A deposit of
$100, therefore, would equal ten shares in the credit union. A deposit
of $1000 would equal 100 shares. Dividends are paid to each
shareholder on the basis of the number of shares held. The more money
in the share account, the greater the dividend will be. Every member
has one vote, regardless of the number of shares on deposit.
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- How are dividends calculated?
- Dividends come from the profits generated by the credit union
operations. At the end of the dividend period, the credit union's
profit - the difference between the interest earned from loans and the
interest paid on deposits - must be distributed to shareholders in the
form of a dividend. The total amount of profit is divided by the
number of shares on deposit to arrive at the per-share dividend
amount. The per-share dividend amount is then multiplied by the total number
of shares held by each member to arrive at the dividend each
member is paid.
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- Who runs the Freedom21 Federal Credit Union?
- A board of volunteer officers, elected by its members, runs the
credit union. The Board of Directors appoints all employees, and is
ultimately responsible for the credit union's operations.
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- Who elects the Board of Directors?
- The members of the credit union elect the Board Members at the
credit union's annual meeting. The five Board Members serve staggered
terms. One member of the first board will serve a one-year term; two
members will serve two-year terms; and two members will serve
three-year terms. At the first annual meeting, one member will be
elected for a three year term. At the second annual meeting, two
members will be elected to serve three year terms. Thereafter, the
expiring terms will be elected on a three year basis, by the
membership.
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- Who decides who gets a loan?
- The Board designates a Loan Officer(s) who has the responsibility
of evaluating the loan application to determine if the loan request
meets the requirements of the loan policy. If it does, the loan is
made, subject to available funds. If the loan application is denied,
the denial may be appealed to the Board of Directors, which will make the
final decision.
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- Are credit union deposits insured?
- Yes. Each account is insured by an agency of the federal
government, the National Credit Union Share Insurance Fund, which is
an arm of the National Credit Union Administration. Each account is
insured up to $100,000. A single depositor may have multiple accounts,
but the aggregate total insured will be $100,000. A depositor may have
more than one account insured, if the ownership of the additional
account(s) is shared with another person.
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- How will the credit union serve its members?
- The Internet will provide primary access to the Freedom21 Federal
Credit Union. All transactions will occur on a certified secure site,
in much the same way most banks now offer on-line banking. The credit
union will offer an array of on-line banking services for members,
regardless of where they live. Mail and telephone transactions will
provide access and service to those members who do not yet have access
to the Internet.
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|
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| Your savings
federally insured to at least $100,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency |