Credit unions can now choose to cover the property, its contents, including equipment and business liability. The commercial foreclosure policy has vacant, partially vacant and business personal property coverage; three-, six-, nine-, or 12-month policy term options; single-coverage property, single-coverage business liability or a package including both basic (vandalism and malicious mischief) or special perils (includes the basic perils and theft); actual cash value valuation; and deductible, limits of liability and comprehensive options.
Today's extremely difficult economy is causing financial strains on member commercial loan portfolios, said Michael Harty, director of credit union protection product distribution for CUNA Mutual.
"Commercial and residential property foreclosures are increasing and creating a potential coverage gap in a credit union's insurance program," Harty said. "CUNA Mutual's bond policy protects a credit union against coverage gaps for residential foreclosures. Our partnership with Lee & Mason now enables credit unions to better manage risks associated with owning an increasing number of foreclosed commercial properties."
Established in 1954, Lee & Mason is rated A, which carries an "excellent" rating from A.M. Best, according to CUNA Mutual.
Sioux Empire Is Xtend Stockholder
Sioux Empire Federal Credit Union is Xtend Inc.'s newest stockholder.
The $56 million, Sioux Falls, S.D.-based credit union is the 45th owner of Xtend, a managerial, operational, marketing, technical planning and consultation firm in Grand Rapids, Mich. Through its purchase of an ownership interest in Xtend, SEFCU also becomes the second South Dakota-based credit union to buy into the CUSO.
"South Dakota has been a solid growth area for our business over the past couple years," said Xtend President Scott Collins. "It's a great credit union state, and we are excited to welcome SEFCU to the family."
Collins said SEFCU has implemented several Xtend services since converting to the CU*BASE core data processing system several years ago including beta participation in the new Xtension call center.
With this latest shareholder, the owners of Xtend now represent 495,000 members and $3.98 billion in assets collectively, according to the CUSO.