Citing a "windfall" from the sale of 3% stock in Credit Union Service Corp., the Virginia Credit Union League is returning $300,000 in dues payments this month to member CUs to help cope with the recession.
"We know many of our credit unions have had a challenging year financially given the economy and corporate stabilization costs," said League Chairman Stan Leicester of BayPort CU. "We hope the dues will help our credit unions cope with their budgetary challenges."
Enabling the dues rebate, said a league official, was the league's sale of shares in CUSC as part of a national "super" stock offering put forward by CUSC to finance switch expenses. Other leagues may also have sold shares back to the Atlanta-based CUSC as part of the transaction, said the official.
In a statement, League President/CEO Rick Pillow noted that the league board thought it prudent to sell the stock given the premium being paid. "The league was unlikely to realize such a gain on any future stock sale," said the league noting that "this is the first time in the league's history that it has been able to rebate a portion of affiliates' dues payments."
Rebate checks were mailed to eligible affiliates on Dec. 18.