The NCUA’s Office of Consumer Protection approved 2012’s first new federal credit union charter Friday: Internet Archive FCU of New Brunswick, N.J. The credit union is a low-income designated, community credit union, the NCUA said in a release.
Internet Archive, a nonprofit funded in part by the Kahle/Austin Foundation, is sponsoring the new credit union. Created to build an Internet library, Internet Archive’s purpose is the offering of permanent access for researchers, historians, scholars, people with disabilities, and the general public to historical collections that exist in digital format.
The second credit union chartered in New Jersey during the past four years will offer services to people living, working, worshiping, attending school, or participating in associations headquartered in the city of New Brunswick, N.J., and the borough of Highland Park, N.J.
Membership is also extended to individuals participating in programs to alleviate poverty or distress and various organizations that are located in approved areas.
Funding for the credit union includes secondary capital, a short-term uninsured source of capital for low-income designated credit unions. This funding, along with in-kind support from mentors, their computer vendor, and their officials, is supporting the services needed in the target community.
“Credit union membership has rapidly grown in recent quarters. With the opening of Internet Archive Federal Credit Union later this year, 135,000 more Americans will have access to a credit union, including many low-income families,” said NCUA Board Chairman Debbie Matz.
“As it grows, NCUA’s Office of Small Credit Union Initiatives will offer assistance to help the credit union prosper. I congratulate everyone who worked to make this great idea a reality,” Matz said.
As a low-income credit union, Internet Archive’s potential members earn 80% or less than the median family income in its local metropolitan area. This special designation allows it to accept non-member deposits, obtain grants and loans from the Community Development Revolving Loan Fund, offer secondary capital accounts, and qualify for exemptions from statutory limits on member business lending.
The new credit union will open for business in October. Products and services slated to be offered include share accounts, share secured loans, signature loans, and fund transfers to banks in Mexico through Directo a México, a payment system established jointly between the Federal Reserve Bank and Banco de México.
Internet Archive FCU expects to add auto loans, share certificates, share drafts, debit cards, ATM cards, online banking, bill payment, and shared branching to its products and services during its first year, the NCUA said. –firstname.lastname@example.org