Nazarene CU, Brea, Calif., staff raised $4,000 in 1999 during a variety of fund-raisers, and recently donated it to Children's Miracle Network. Lockheed Georgia Employees FCU, Marietta, Ga., staff raised more than $4,600 to help needy and ill members of families in their community during the holidays, purchasing gifts, clothing and necessities and delivering them. Among the recipients were 2 families with young mothers suffering from terminal cancer, both with young daughters. When one of the mothers passed away, LGEFCU staff helped pay funeral costs and utilities bills for the elderly caregivers left to raise the little girl....

DuTrac Community CU, Dubuque, Iowa, has earned a 1st-place national 1999 Dora Maxwell Social Responsibility award for its Kids Closet program. This program assists local families in need by providing them with basic back-to-school supplies and clothing. Young Savasaurus Club members, under age 12, assisted in collecting the school supplies, which later went to more than 500 kids. Fort Campbell FCU, Ky., announced during the annual Christmas Dinner that the top employees of 1999 include: Sue Cantu, Employee of the Year; Susan Laney, Supervisor of the Year; and Maria McKee, Manager of the Year. -...

California CU, Los Angeles, has bid a fond farewell to long-time Director Robert V. Way, who retired in December after 52 years of service. Way served on the supervisory committee from 1947-1975, when he was elected to the board. He was chairman of the personnel committee when he retired. "Bob has one of the most remarkable service records I've ever known," said board Chairman Robert Alm. "In his more than 50 years as a volunteer, his counsel, contributions, and commitment have added to the CU's success. We will miss him." MembersFirst CU, Pensacola, Fla., CEO Wayne Lowery announced his retirement in January after 30 years of service. He began as assistant general manager in 1970. "There is no single accomplishment I would like to showcase at the end of my credit union career...," Lowery said. "The sense of fulfillment that I take with me is found in watching a small organization, once called Escambia County Teachers CU, grow to become the MembersFirst CU of Florida we know today, an organization that has greatly impacted the community and the people in it. That achievement is not the result of just one person." NWA FCU, Bloomington, Minn., recently began construction on a new headquarters building in Apple Valley, scheduled for completion in Dec. 2000. Two hundred employees of the FCU will work there when it opens. NWA FCU has more than $750 million in assets....

ARLINGTON, Va. - Stressing that it is an issue of credit unions being competitive with uninsured financial service providers, and not a federal vs. state-charter issue, NASCUS is urging NCUA allow federally insured state-chartered credit unions to accept uninsured deposits and shares, if state law permits. Commenting on NCUA's proposed changes to share insurance regulations regarding living trusts, joint revocable trusts, IRA accounts, public accounts, guardian accounts and the application of local law to share insurance determinators as well as on revisions to the appendix to Part 745, NASCUS recognizes that the proposed revisions are meant to maintain parity between NCUA's insurance program and the Federal Deposit Insurance Corporation (FDIC) rules. "That is a reasonable goal, except that, unlike banks, many state-chartered credit unions are empowered to accept deposits as well as shares, and state credit union laws and regulations may allow those credit unions to opt not to insure the deposits," wrote Doug Duerr, president, NASCUS. "Today's credit unions are competing not only with insured financial service providers for their members' services, but increasingly with uninsured ones," Duerr told Credit Union Times. "It's difficult for credit unions to compete with these types of providers if they're not on common ground." Duerr accused NCUA of "taking an archaic position" on the issue. He emphasized that the issue is one of interest to all credit unions in the industry and that "the present rule has the effect of preempting a State's right to allow its credit union to offer a class of uninsured deposits." NASCUS further argues that such a move by NCUA would be inconsistent with Executive Order 13132 which limits federal preemption of state law "to the minimum level necessary to achieve the objective of the statute..." It further directs the federal agency whenever it "foresees the possibility of a conflict between state law and federally protected interest within its area of regulatory responsibility, the agency shall consult, to the extent practicable, with appropriate state and local officials..." NASCUS also urged NCUA to solicit comments on amending the insurance regulations and the insurance contract to allow federally insured credit unions to offer members a class of uninsured shared. In a July 15, 1999-comment letter to NCUA, NASCUS expressed its concern that "NCUA insurance regulations and the insurance contract would have to be amended" to allow federal insured credit unions to accept uninsured deposits or shares, if state credit union laws and regulations allow. Duerr said NCUA has not addressed those issues and NASCUS' points, as evidenced by NCUA's proposed rule. "NCUA is obligated to listen to NASCUS' comments on this issue because of Executive Order 13132," said Mary Martha Fortney, vice president accreditation and government relations for NASCUS. "A few years ago, members would have been reluctant to put their money in an uninsured account. Today, that has to be explored as a viable option," said Duerr. -...

New NAFCU President Fred Becker Jr. assumed responsibilities in his new post at the trade association........................Page 7...

RANCHO CUCAMONGA, Calif. - Anaheim, Calif. is best known to tourists as the home of Disneyland and Knott's Berry Farm. But to the California Credit Union League, this city in Orange County has been the defendant in a case that has dragged on for six years stemming from a lawsuit filed by the California Credit Union League against the city because it charged credit union employees, officers and volunteers a 13% occupancy tax at the Disneyland Hotel during the league's 1993 Annual Meeting and Convention. In the latest exchange of documentation, petitions and appeals between the CCUL and Anaheim-and the renaming of the case at least four times depending on who's the petitioner and the defendant-the city is appealing a lower court's re-affirmed decision that went against them. In response, the league has submitted a brief prepared by its retained counsel of Ott and Hoffman of Glendale, Calif. on why the case doesn't warrant the attention of the U.S. Supreme Court. "This case is about a municipality so intent on maintaining its taxing authority that it seeks to circumvent plain statutory tax immunity for federal credit unions by tortured semantics," stated the California Credit Union League in its 23-page brief filed Jan. 18. "By its instant petition, Anaheim refuses to heed the sound analysis and unambiguous decisions issued by both the district court and court of appeals which flatly rejected its strained argument. Instead, money is the issue." In a re-affirmation of its own 1996 opinion, the 9th Circuit Court of Appeals ruled in Sept. 1999 that municipalities cannot charge federal credit union employees, officers and volunteers - and by extension federal employees - hotel occupancy taxes when they travel on business. Anaheim appealed the lower court's 1996 ruling to the U.S. Supreme Court. The high court subsequently overturned the 9th Circuit in 1997 because it ruled in another case that year that the U.S. government needed to be a co-plaintiff in these types of cases. When the Department of Justice entered the case on the side of the CCUL, the 9th Circuit Court of Appeals re-affirmed its decision and ruled that since federal credit unions are instrumentalities of the federal government, when employees are conducting credit union business, they "stand in the government's shoes." In addition, since Section 1768 of the Federal Credit Union Act immunizes federal credit unions from state and municipal taxes, credit union employees are immune from paying these taxes when acting as agents of the credit union, the appellate court ruled. Joe McDonald, vice president and general counsel, CCUL told Credit Union Times he hopes the U.S. Supreme Court "will listen to our arguments about not granting certiorari and let the decision of the 9th Circuit Court stand. It was a well thought out decision on the issue and there is no reason for it to be reviewed and gone over by the (U.S.) Supreme Court." McDonald stressed that the case actually involves two issues - tax exemption, and the status of federal credit unions as federal instrumentalities. In its petition for a writ of certiorari, Anaheim agreed that it cannot tax a federal credit union. But it argued that the 9th Circuit Court made a mistake in its ruling, because hotel occupancy taxes - also known as "transient occupancy" taxes - are assessed on credit union employees, not the credit union itself, and Section 1768 applies only to the credit unions. Therefore, the city argued, the tax does not violate the law. One of the arguments offered by Anaheim was that the 9th Circuit opinion conflicts with a 1985 4th Circuit opinion, United States v. Montgomery County, which held that the county could constitutionally impose a transient occupancy tax on outpatients of the National Institutes of Health. McDonald accused the city of "inaccurately preparing materials for the court." He added that "the Court doesn't like misuse of the law." "This has nothing to do with whether employees of a federal credit union doing credit union business can be lawfully taxed," the CCUL brief stated. "The decision in Montgomery County does not even discuss employees of the NIH, much less render a holding concerning employees of a federal instrumentality. And Anaheim admits as much." McDonald is optimistic the high court will agree with the CCUL's arguments and refuse to hear the case. "Once we get this resolved in our favor, it will be beneficial to all credit unions and all federal instrumentalities," he explained, adding that "Anaheim didn't imagine the scope of the issue when they did what they did." Asked whether he knew if other federal instrumentalities were involved in similar tax-related situations with Anaheim, McDonald said the California Credit Union League had been contacted by the Department of Defense and the Department of the Army for meetings. The city of Anaheim had 30 days from the date of the brief to respond. However due to a death in the family of Moses Johnson from the Anaheim City Attorney's Office, the league granted an extension to the deadline. -...

WASHINGTON - It's always difficult to predict the outcome of lobbying efforts and legislation on Capitol Hill, but never so much as during an election year. Still, while Democrats and Republicans in the House and Senate and the Administration jockey for position on who will get the credit for passage of the pending electronic signatures bill, CUNA has become the first credit union group to endorse the House version of the measure. The question now is, who will be next? CUNA's Vice President of Governmental Affairs John McKechnie said Reps. Thomas Bliley, Jr. (R- Va.) and David Dreier (R-Calif.)-the prime movers of H.R. 1714, "The Electronic Signatures in Global and National Commerce Act" -are eager to get the bill to conference by late January or early February. "They intend to hit the ground running," said McKechnie. The House passed the bill last August. That's not to say that CUNA is 100% in favor of all the wording in the House bill. The association is contemplating pushing for clarification of a couple of areas of the bill, specifically those portions pertaining to the Fed's rulemaking authority. McKechnie explained that H.R. 1714 language is ambiguous in these sections. Still, "the House version is better than the Senate's bill S.761 which lacks a record retention provision crucial to electronic signatures and it's less consumer friendly," said McKechnie. "CUNA doesn't perceive the modifications in the House bill as being a deal breaker, but we'd prefer to see the wording about the Fed's rulemaking authority clarified and put in writing." CUNA apparently isn't the only one concerned with some of the wording in H.R. 1714. Without naming names, McKechnie said "there are some people on the Hill" who think the Fed won't be detrimentally affected by the lack of rulemaking protection in the bill, but others including the Fed think there's something to be concerned about. As to how this disagreement will affect the final outcome of H.R. 1714, McKechnie opined that it's still too early to tell because a Conference Committee hasn't met yet to reconcile the House and Senate approved separate versions. He offered though that "There is broad sense the Hill wants to get electronic signatures up and running. Nothing can stop the bill at this point." Not even what he described as the "cat and mouse game" the Democrat Administration and Republican-controlled House are playing to make sure their side comes out on top and gets the credit for the bill. "There are definitely a lot of sub-plots going on, but I get the sense this is an issue that will get resolved and the bill will get rolling," McKechnie said. He added that it appears the House version will prevail during the conference committee. NAFCU meanwhile is choosing to take a wait-and-see position on the e-signatures bill. John Zimmerman, communications manager said the trade association was "still tracking the bill, but we have no formal position on it right now." He added that NAFCU has had several meetings on the bill and that it recognizes the importance of the legislation to credit unions. "Whatever the outcome of the bill, we're sure there will be a lot of rulemaking and NAFCU will want to participate. Our lack of formal position on the bill at this time shouldn't be misinterpreted as a lack of interest." With the start of the Conference Committee imminent when Credit Union Times went to press, congressmen and CUNA have been flexing their lobbying muscles to push for the desired wording clarification. McKechnie said he and Maura McGilvray, manager of House Legislative Affairs for CUNA have met with members of the House Commerce Committee and that they have shared their mutual concerns. In addition, House Banking Committee Chairman Jim Leach (R-Iowa) has asked the House leadership that the House Banking Committee be given a seat at the conference meeting and that one member of the House Commerce Committee be allowed to be part of the conference committee as well. "Given the high level of interest in broader e-commerce issues, it's imperative that the credit union point of view be expressed during the upcoming Conference Committee," said McKechnie. -...

In a comment letter to NCUA, NASCUS is urging the agency to allow federally-insured CUs to accept uninsured shares and deposits....................................Page 12...

SAN ANTONIO, Texas and MOUNDS VIEW, Minn. - Who would have thought 20 years ago that checks would still be one of consumers' preferred methods of payment systems in the 21st century? After all, the demise of the check has been on experts' list of predictions for decades. Yet here we are in the dawn of a new century and not only are checks still around, but they've grown in use by 2% in the last two years. So if the "demise of checks" has turned out to be a nonevent, what's the correct operative phrase or word? "Choice," answered Brad Wheeless, vice president and general manager of Clarke American, credit union division. "It's what consumers want. While the share draft account is still at the center of consumers' payment vehicles, we're also seeing the aging of the youth population who are comfortable with technology and electronic bill paying systems. The growing segmentation among consumers is driving check usage." Even given the increased availability of high tech payment systems, there is still a strong consumer connection to checks. "Outside of cash, checks are the most conventional method of payment," said Liberty President Bob Anderson. "Consumers and retailers like checks because of their convenience, accuracy and the capacity to generate enormous volume of them easily. So all participants have found checks to be a strong and stable payment system." In fact, because of the pervasive use of checks, their cost has remained very competitive with other payment systems and processing costs have come down. According to a report from A.C. Nielsen, check volume is expected to increase to 150 billion in 2001, from less than 100 billion two years ago. "Checks have held their own even as other payment systems have grown," Anderson said. Given this scenario and with all indicators showing the continued popularity of checks, Anderson's best prediction for this century is constant, incremental enhancements in electronic presentment and payment systems, changes he stresses that will be evolutionary, not revolutionary. But this evolution of payment system products will unravel parallel to the continuing usage of checks. That's why, said Anderson, as credit unions go forward, it's imperative for them to have new technology for their members to use, as well as stay in touch with checks. "A consumer's primary financial institution has always been defined as being that financial where they have their checking account," Anderson offered. "Maybe, given the various options and payment delivery systems available to consumers, that definition will change. Clarke American's Wheeless opined that credit union members' demand for service will continue to focus around their share draft accounts, including the availability of seven by 24 service, same day turnaround of check orders and Internet- based, consumer check ordering programs. "It's inconceivable that all consumers will simply abandon the use of checks," Wheeless said. "The issue", says Anderson, "is whether in the continuing evolution of payment systems available to consumers we ignore the importance of the checking account in favor of the latest technology. Balance is everything. It's crucial that credit unions continue to market all forms of payment systems to their members." -...

BOSTON - Three New England-area credit unions are among the 30 financials selected by the Federal Home Loan Bank of Boston to receive $5.2 million to finance affordable housing initiatives in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. These projects, funded in part through the bank's Affordable Housing Program (AHP) will create or preserve a total of 688 rental and ownership units for very low and low-income individuals and families. Named as recipients were: Vermont Development CU, Statewide, Vt.; Peoples CU, Riverton, R.I.; Metropolitan CCU, Chelsea, Mass; The Federal Home Loan Bank of Boston is a cooperatively owned wholesale bank for housing in the six New England states. More than 440 financials throughout New England are members....

WASHINGTON - Most economists predicted that the Federal Reserve would raise rates, it was more a question of how much-a quarter-point or half-point? At its Feb. 2. meeting the Fed raised interest rates by a quarter-point. It marked the fourth rate increase since June. The economic reasoning behind the increase is to try and slow the sizzling hot economy and fend off inflation. In a statement the Fed said it was worried that the red-hot economy "could foster inflationary imbalances that would undermine the economy's record economic expansion.'' As a result of the increase the federal funds rate-the interest that banks charge each other on overnight loans-increased from 5.50% to to 5.75%. The Fed also raised the discount rate- the interest that the Fed charges to make loans to banks- by a quarter point to 5.25% from 5%. In another Fed related event, the Senate Banking Committee on Banking, Housing and Urban Affairs approved the nomination of Alan Greenspan to a fourth term as chairman of the Federal Reserve....

BETHPAGE, N.Y. - After a 27 year career at Bethpage FCU, 25 of which have been as president/CEO of the $950 million, 88,000-plus member credit union, Peter Seitz has retired. Under Seitz's direction, BFCU grew from being a small, single sponsor-Grumman Aerospace Corp - credit union, into a multi-sponsor CU with more than 60 select employee groups. "It was Pete's vision of becoming a multiple sponsor organization that enabled Bethpage FCU to survive the Grumman downsizing and sale, and enabled us to become what is today the largest credit union on Long Island, the fifth largest in New York State, and among the largest nationally," commented BFCU Chairman Sam Piazzola. "Pete's dedication to the credit union movement transcended BFCU's success, and was evidenced through his leadership in galvanizing local support for H.R. 1151, as well as the support of BFCU members and employees." At a BFCU board meeting on Jan. 26, Kirk Kordelseski, executive vice president, was named to succeed Seitz as president/CEO of BFCU....

WASHINGTON - After 24 years of service in Congress, Rep. Bruce Vento (D-Minn.), a ranking member of the House Banking and Financial Services Committee and a veteran credit union advocate-during the push for passage of H.R. 1151, he was an articulate CU supporter and a co-sponsor of the legislation-has announced he will not run for re-election to the House of Representatives for the 107th Congress due to health reasons....

BEAVERTON, Ore. - Corillian Corp., a provider of eFinance solutions, has filed a registration statement with the Securities and Exchange Commission to hold its initial public offering. The IPO is expected to be held in early April. Corillian has credit union roots. One of its founders, Ted Spooner, served as chief financial officer for First Technology CU, Beaverton, Ore., from 1986 to 1994. Corillian has made headlines in the financial arena for its work developing products and services for the Open Financial Exchange (OFX) protocol. Corillian is the latest tech firm that provides Internet-based solutions for the financial services industry to go public. Digital Insight, Calabassas, Calif., and cavion.com, Denver, both went public in the last twelve months. Corillian also recently announced that United Airlines Employees` Credit Union, Chicago, and Credit Union West, Phoenix have selected its Voyager Platform for Internet banking....

MADISON, Wis.-CUNA Mutual Group is offering one- and two-day workshops in April and May at various locations nationwide for credit union defined contribution and defined benefit retirement plan administrators. The workshops, which will be free, will use a "how to" approach on such things as form completion, determination of contribution amounts and dealing with withdrawal requests, so that CUNA Mutual can respond more quickly to plan design issues. "The easier we can make it for plan administrators to maintain their qualified plans, the better job we can do servicing their plans," said Linda Growney, assistant vice president of pension client services. "We're not trying to transfer the burden. We're trying to give plan administrators answers so they can deal directly with employees." Workshops will be taught by regional CUNA Mutual Pension consultants who work with CUs. The manual to be used will be published on CUNA Mutual's Web site at www.cunamutual.com this summer, and will be updated regularly. Registration forms were mailed to plan administrators in late January. For information, call the pension response center at (800) 999-8786....

LOMPOC. Calif. - Vandenberg FCU has named Diana Dykstra as the credit union's new president/CEO beginning in February. Dykstra replaces Sallie Stone who resigned from VFCU for personal reasons. Dykstra comes to her new position at VFCU with over 20 years experience in financial service operations, and she is considered one of the top executives in the credit union movement. Her experience includes 15 years on the management team of The Golden 1 CU, and she most recently served as a Senior Vice President at Patelco Credit Union in San Francisco and as the CEO of Patelcorp Service Organization Inc. VFCU has $261.8 million in assets and nearly 37,000 members....

WASHINGTON - Pulitzer Prize-winning humorist Art Buchwald, reknowned for being one of the country's funniest political observers and satirists, will close CUNA's 2000 GAC conference to be held Feb. 27-March 1 at the Washington Hilton Hotel. Buchwald joins a list of "Who's Who" already on the conference's list of speakers, including Visa U.S.A. President/CEO Carl Pascarella, the award-winning McLaughlin Group, congressional representatives and members of the NCUA board....

MINNEAPOLIS and ATLANTA - Check Technology Corp., a leader in the design and delivery of print production solutions, and John H. Harland Co., a leading provider of checks, database marketing software and direct marketing campaign management software to financials, have signed a three-year contract for the purchase of Check Technology's ImaggiaT advanced digital document production system. The agreement, which is valued at approximately $40 million, also includes consumables, supplies, and a dedicated Check Technology service team to support Harland. Under the terms of the agreement, Check Technology will supply Harland with the latest Imaggia technology. The product features PostScript and a special interface software allowing Harland to link the digital printers to its new manufacturing system. The contract will begin in the spring and can be extended beyond the initial three-year period....

ST. PAUL, Minn. - Deluxe Corp.'s board of directors has approved a plan for a strategic realignment of Deluxe that will create two independent companies. Under the plan, Deluxe will combine its eFunds and iDLX Technology Partners businesses into a separate, independent publicly traded company, to be called eFunds Corp. Deluxe Paper Payment Systems (PPS) will continue to operate under the Deluxe Corporation name and be traded under the ticker symbol DLX. J.A. Blanchard, Deluxe Corp. chairman and CEO will become chairman and CEO of eFunds Corp. In addition, Debra Janssen, president/CEO of the original eFunds division, will become president/CEO of the new eFunds entity; and Dr. Nikhil Sinha, president/CEO, iDLX Technology Partners will become executive vice president for global corporate development. In addition, Lawrence Mosner, currently vice chairman, Deluxe Corp., will become chairman and CEO of Deluxe; and Ronald Eilers, currently president/CEO, Deluxe Paper Payment Systems, will become president/COO of Deluxe following completion of the split-off. Deluxe announced the formation of eFunds Corp. in April 1999 by combining its electronic transaction and payment protection businesses under one umbrella company.These include Deluxe Electronic Payment Systems; Debit BureauT; Chex Systems Inc.; SCANT (Shared Check Authorization Network); and Deluxe's check conversion business....

SAN ANTONIO, Texas - Clarke American has raised $326,687 in its United Way Campaign from individual associate pledged contributions, special fund-raising events and company contributions. Company officials said the contributions surpassed last year's total by 28% - one of the highest percentage increases of any company in the great San Antonio area. Brad Wheeless, vice president and general manager of Clarke America's Credit Union Division said he was very proud of everyone's generosity and that he was particularly impressed with the impact the contributions will have on the social services United Way provides. -...

MEMPHIS, Tenn. - Check Solutions Co., a develop of check and image processing technologies and services for the financial services industry, has released its newest addition to its NeXGenT series of products - Large Table Access (LTA). LTA includes two major components, one module on the host computer and the other on the sorter's PC which together let financials process extremely large data tales in their 3890/XP sorter environment, allowing the use of selection criteria to make sorter decisions that weren't possible previously. This includes the ability for a financial to load its entire DDA account base into the sorter for look-up of account numbers when sorting on prime pass. The host module processes the input data and compresses it into a usable file format. The sorter module accesses, searches, and compares captured MICR data with the compressed table. Using the LTA technology, company officials say financials can use data such as on-us account numbers to provide positive identification of valid accounts, account number conversions, and editing of on-us accounts. Company officials say this will allow financials to pull Stop Pays, Closed Accounts, and potentially fraudulent items during prime pass....

MOUNDS VIEW, Minn. - Liberty is continuing to expand with the formation of its newest subsidiary - Liberty Financial Supplies - a one-stop source for CUs to obtain official checks, continuous checks, cashier's checks, draft checks, money orders and custom financial forms and supplies. Liberty's newest subsidiary incorporates five current Liberty product areas - MICR QuickT; Letter Check ModuleT; payment books include up to 60 coupons and pre-printed, self-adhesive mailing labels; custom accessories that support CU branding; and financial supplies. More than 2,500 credit unions throughout the U.S. currently use Liberty Financial Supplies products....

I just finished reading Credit Union Times Staff Reporter Lora Ide's story on bankruptcy (CU Times, Jan. 26) and the concerns Consumer Federation of America has about the Senate bill. What a thorough article, chock full of relevant facts and stats that provide needed perspective. I hadn't read anywhere else how this country fell into the bankruptcy crisis. Lora told how it happened. Her piece is going in my file - a great reference around which we can plan our continuing communications. It galls me to see business news sections that print headlines about how bankruptcies have fallen, without offering the perspective Lora did. While bankruptcies may have fallen, no one who watches the credit industry thinks bankruptcies will fall below a million per year. That's roughly equivalent to four of Wisconsin's largest cities declaring bankruptcy year after year! Despite the disagreements Lora's article mentioned, bankruptcy reform is needed now more than ever. Thank you for continuing to shed light on this important subject. Chris Olson Public Relations Specialist Wisconsin Credit Union League...

The writer of a recent letter to the editor ("Board members need to assess themselves", (CU Times, Jan. 12)) made several good points, particularly emphasizing peer review. Scary thought! An easier concept to start with may be to take time on a yearly basis, say at a planning retreat, for board members to privately evaluate themselves using a previously approved set of questions. I believe one of the questions for boards that do not have term limits, should be "Is it time for me to move over and let new blood come onto the board?" Granted that nothing can take the place of experience; nothing, also, can take the place of new ideas and viewpoints by new members. This question if honestly answered by older members who have served an ample number of years, could help revitalize our credit unions for the new century. They can either outright retire or be placed on an emeritus status (no voting rights, but counsel welcome), as some credit unions already do. Bob Swanson Chairman Sierra Central Credit Union...

I take issue with the recent articles in Credit Union Times regarding ATM fees being unfair to consumers and credit union members. I noted the opinions came from some mega credit unions. Maybe those folks know something we don't. We are a $7 million credit union with one ATM at a location for postal workers. It is not available to the public at large. Most of the usage of this machine is by non-members. We knew there was a lot of expense with an ATM, but the actual costs are pretty astounding to us. Maybe if some of the servicers were not taking such a big piece of the pie, we would not have to charge fees. We paid one vendor $1,450 last month for ATM service and another $600 to service the machine itself. Plus $188 per month for other fees and on and on. That's before we count the actual cost of the machine and set up fees. We want this service to break even, and at $1 per transaction it won't. Maybe the bigger credit unions get breaks on costs? I for one, believe each credit union has to do what it has to do. Kathleen Ricketts CEO Postal Credit Union of Northern California...

There is an experiment taking place in Helena, Montana that may determine how credit unions will operate in the future. The Helena branch of the Federal Reserve Bank of Minneapolis is conducting a pilot in electronic check clearing. The electronic check clearing or collection process refers to capturing the MICR line information from the bottom of checks and transmitting this data directly to the financial institution on which each check is drawn. This can reduce expenses and increase available funds by clearing checks faster. Late last year, the Fed launched an EPIC pilot project at the Helena, Montana branch. Ted Umhoefer, senior vice president of the Minneapolis Fed, said, "Our objective is to provide an infrastructure to support a movement toward electronic (check) presentment. It's being looked at as a test-of-concept across the Federal Reserve System." To understand what the Federal Reserve Board is doing in Helena, we need to look at how the use of imaged share drafts can improve the existing paper-based payment system. First, let's consider the difference between Electronic Check Presentment (ECP) and Electronic Presentment Image Check (EPIC). ECP is the electronic transmission of MICR line information to the Federal Reserve, which is followed later by the paper check. EPIC is the transmission of the MICR line information and the image of the check. The goal of both these efforts is to reduce the processing time to clear items at the Federal Reserve and reduce check handling and transportation costs. In short, the faster transit items are cleared by the Fed results in less "float" for your credit union. How much can your credit union save by reducing turnaround by one day? Up until now, the delays of implementing ECP and EPIC have been attributed to Y2K concerns, regulatory uncertainties about the legal status of electronic documents, and consolidation in the banking industry. However, in December, the Federal Reserve modified Regulation CC, which governs the availability of funds and collection of checks, allowing banks and credit unions to use electronic images instead of paper returns to pilot electronic return systems. According to a recent article in Corporate EFT, Southwest Mountain Federal Credit Union (SMFCU) has used EPIC since October 1, 1999, and has helped the credit union get returned items from the Fed a full day earlier. Donna Kostelecky, vice president at the credit union, said SMFCU was also saving money on retrievals. Under the old system, financial institutions paid 85 cents per photocopy request. Now, under EPIC, copies of items are free for up to three days. "I would estimate that in 1999 banks spent about $50 million on ECP efforts, and that it will grow into the 20 percent range over the next year," according to Robert Hunt, a senior research analyst at Tower Group. Improving float not enough? How about the impact of imaging on customer service? Credit unions are now in a position to use technology that banks have been developing for years. But how? Whether items were captured electronically, either in-house or at a service bureau, credit unions have eliminated a bulky Microfiche process and thereby set in motion the ability to research and handle member share draft questions while the member is still on the telephone. Copies of specific share drafts can be viewed on the PC screen, printed out, and faxed or mailed to the member if necessary. But why produce more paper when many credit union members have e-mail (and more are sure to follow)? The image of the share draft could be e-mailed. Eventually, members will be able to access images of share drafts through the credit union's Web page using secured access! This same technology can be used to improve member statements. Stepping out of the paradigm, isn't it the purpose of statements to provide members with enough information about their transactions so they can reconcile their accounts? Imagine the credit union member receiving a statement that included picture images of share drafts, thereby reducing calls from members regarding their statements. Taking this a step further, credit unions will be able to offer members electronic statements. This would eliminate printing and postage costs altogether. It is possible that credit unions willing to invest in this technology will increase membership and extend their service level beyond banks in their area. There are several positive steps that credit unions can take: * Include EPIC in long-term technology planning, * Take a look at reducing item-processing costs, and * Identify opportunities to improve member service and attract new members by augmenting existing processes with commercially available technology. In a few short years, we may look back at the Helena project not as a faster way to process transit items, but rather a turning point in improving relationships with members by providing more timely information....

The big flap over the infamous NCUA credit union survey that is supposed to prove that federal credit unions are (or perhaps are not) serving people of modest means has been going from bad to worse since the issue first surfaced, but recently it has become downright ugly. The survey is a classic example of how a single issue can be blown completely out of proportion, take on a life of its own, become totally politicized, and embarrass an entire industry. It's also an example of how easily long-time friends and allies can be divided and quickly become adversaries. The cast of characters keeps growing. First it was NCUA Chairman Norm D'Amours crying in the wilderness seeking support wherever he could find it (including political buddies) for his pet cause. He demanded that credit unions be held accountable and prove conclusively that he was right, that credit unions are not serving the underserved. Inevitably, the other two members of the NCUA Board, Yolanda Wheat and Dennis Dollar, were drawn into the fray. They tried, but failed to give the Chairman's cause some badly needed perspective. As the decibel level increased, the only solution to the embarrassing and highly visible in-fighting was to seek a compromise of sorts and agree to a survey, but only if it were made voluntary and only for FCUs. The Chairman stood his ground. He not only insisted on a survey of all credit unions, he vehemently demanded that the survey be made mandatory. Even though NCUA clearly only regulates FCUs, the fact that most state chartered CUs are federally insured allows NCUA to get a foot in the state charters' door. In D'Amours' mind, that was enough of an opening to include them in the survey. Battle lines were quickly drawn. "Voluntary is a sham." It must be "mandatory," cried D'Amours. If there must be a survey, it has to be "voluntary" cried Wheat, Dollar, and CUNA. If there must be a survey, it should only go to those credit unions NCUA regulates, namely federal charters, cried NASCUS. "This is a dual-chartering issue," they added. It is clear that NCUA is not authorized to do such a survey cried NAFCU, and immediately set out to prove it. Credit unions themselves said little. They had more important issues to deal with. To fill it out or not fill out the survey, that is the question! Never mind the basic premise that the survey is worthless. Based on how the questions are interpreted, it could prove a case either way, but it's a sure bet that the results will show that credit unions serve all members, including people of "modest means." Nevertheless, this innocuous survey has allowed one man to use his power to focus negative internal and external attention on an entire industry that has a solid history of serving members from all walks of life. Ironically, while D'Amours is off to New Hampshire to help Vice President Gore in his quest for the White House, the credit union folks back home are slugging it out in public. The banking industry is certainly enjoying all the internal fuss. Credit union friendly politicians meanwhile find squabbles like this troublesome. It puts them between a rock and a hard place when it comes to supporting credit unions. And what signal is this sending to the public and media? CUNA is being criticized because it says just fill the darn thing out. If we fight it, says CUNA, the situation will only get worse. D'Amours will be back with something more ominous. By the way, isn't CUNA correct in attempting to represent its constituency, which happens to be leagues and credit unions with both federal and state charters? While the Chairman stands on the sidelines holding the coats of the participants, NAFCU is taking a defiant position that can only send a wrong signal to the competition and politicos that credit unions are not doing a good job of serving all of their members and maybe they have something to hide. NASCUS meanwhile has turned an irrelevant survey into a states rights issue. Is this really important enough for NASCUS and its prime membership, state regulators, to fall on their swords for? This is not to say that NASCUS doesn't do an excellent job representing state chartered credit unions. They do! And they have done an outstanding job preserving and protecting the dual chartering system. But should a meaningless survey be positioned as a deal breaker in turf protection? Accusations and threats are flying across the credit union landscape. Everyone seems to have something to say about the out-of-control political situation originally fathered by the one-trick pony NCUA Chairman, except credit unions themselves. Stop it! Stand back a minute and think of the harm all of these shenanigans are doing to credit unions and the very members who are supposed to be under consideration. Who will be the winners in this overheated battle? The losers? Doesn't anyone except the credit unions themselves remember and realize that, as Bob Bianchini, Oklahoma League CEO, said loud and clear, "the operative word here is voluntary"? It is ultimately policymakers and CEOs of individual credit unions who will decide whether or not to fill out the survey. Whether they decide to do it or not, based on their own criteria, or because they are influenced by NCUA, CUNA, NAFCU, NASCUS, state regulators, leagues, or whomever, CUs need to do it or not do it but either way, they need to get on with it. Individual credit unions need to demonstrate that they are aware that there are far more important issues with far greater consequences for credit unions and their memberships than a worthless survey designed to appease one man! Even if those credit union people in high places don't realize it....

Besides showcasing two teams that rose from the NFL ashes, Super Bowl XXXIV was the launching pad for the advertising world's most expensive ($2.2 million for 30 seconds) TV commercials. But in addition to the teams being different, so were the sponsors of the pricey television spots. A high percentage of them were so-called dot com firms that didn't even exist until very recently. In case you haven't noticed, that same phenomena has occurred at Credit Union Times. In the last year or so, a rash of new companies have discovered credit unions and almost at the same time discovered that Credit Union Times was the best place to introduce themselves to credit unions. Of course this has meant a dramatic increase in ad revenues for Credit Union Times. But more importantly, what it has meant to our growing number of paid subscribers is a tremendous increase in weekly editorial coverage of important credit union news stories. To put this in perspective, based on our normal weekly issue being 28 pages, in the first five issues of 2000, we have exceeded that number by 48 pages. That's like giving readers almost two bonus issues of hard-hitting and timely news stories. As further proof, our editorial budget in the past year has tripled in size. And the year has just begun. Among the many things our traditional and new dot com advertisers do is pay the bills that allows Credit Union Times to bring readers a bigger and better product. And for that we say thank you....

AGE CU, Albany, Ga., has appointed the following to vice president: Ty Bettis, who is responsible for the commercial center; Becky Layfield, responsible for marketing and public relations; and Sandy Dollar, human resources director since 1986. Gulf Coast Com-munity FCU, Gulfport, Miss., has named Craig Evans vice president of information systems....

CommonWealth One FCU, Alexandria, Va., has named the following managers as vice presidents: Charlotte Cash, marketing & business development; Frank Hackney, retail sales & operations; Cathy Heacock, finance & information systems; and Greg Seubert, human resources & administrative services. Credit Union Central Falls, Central Falls, R.I., has named Lisa G. Dandeneau vice president of electronic banking & technology. Langley FCU, Hampton, Va., has made the following appointments: David Lundahl, executive vice president; Gregory Manweiler, senior vice president of finance; Barbara Elvington, senior vice president of operations; Gary Hunter, assistant vice president of administration; Richetta Brown, assistant vice president of accounting; Krista S. Moses, assistant vice president of human resources; Ann Johnson, assistant vice president of member services; and Diane Brown, assistant vice president of accounts control. Mid-Atlantic FCU, Gaithersburg, Md., has made the following appointments: Evelyn Hobbs, marketing director; Scott Sabitus, Germantown branch manager; Michael Gough, promoted to director of branch administration. Mon-Oc FCU, Toms River, N.J., has named Gwendolyn O. Love to the board of directors. U.S. Airways FCU, Moon Township, Pa., has named Joseph C. Cirelli president. SSA Baltimore FCU, Md., had made the following appointments: Betsy Hakes, call center supervisor; Adrienne Armstead, budget analyst; Christine Norris, Security West Branch supervisor; Francera Johnson, collector; Barbara Holley, collections assistant; Bonnie Mascaro, floating branch manager; Kathy Smith, electronics services specialist; and Wanda Edmonds, member service/call center representative. In addition, Michelle Servary was named assistant systems operator, and Betty Braswell, Angela Johnson, Yan Meng and Mary Wilder were named senior member services representatives....

CME FCU, Columbus, Ohio, has named James M. Riederer president/CEO. Commonwealth CU, Frankfort, Ky., has named Richard R. Warren vice president of lending. Macomb Schools & Government CU, Clinton Township, Mich., has named Scott Townsend vice president of information systems. Wisconsin CU League, Pewaukee, Wis., has named James Carrick training specialist....

U.S. Central CU, Overland Park, Kansas, has appointed Teresa Brent as a public and government relations assistant....

Creditor Resources Inc. (CRI), Atlanta, a provider of insurance programs, automated systems and professional training and support, has made the following appointments: Brent Nevins, sales rep for Michigan; Scott Leta, sales rep for Ohio; Jeff Langston, sales rep for the Southeast; and Brandon Smith, training specialist. CUNA & Affiliates, Washington, has named Gretchen Graf grassroots manager in its governmental affairs department. CU Processing Inc., Southfield, Mich., a developer and marketer of data processing programs and systems designed for the CU industry, has named John B. LoPreto Jr. vice president. Denver Investment Advisors, manager of Denver-based Westcore funds, has named Tim Quinlisk, CFA, to its investment management team. - lide@cutimes.com...

Hughes Aircraft Employees FCU, Los Angeles, has named Nader Moghaddam senior vice president for sales & operations. U-Lane-O CU, Eugene, Ore., has named Angela Vezzetti training manager....

ST. LOUIS, Mo. - Joe Brueggemann, long-time president of St. Louis Teachers Credit Union (now St. Louis Community CU) and Missouri Credit Union League volunteer, died Jan. 27 from complications resulting from injuries he suffered in a fall....

Nazarene CU, Brea, Calif., staff raised $4,000 in 1999 during a variety of fund-raisers, and recently donated it to Children's Miracle Network. Lockheed Georgia Employees FCU, Marietta, Ga., staff raised more than $4,600 to help needy and ill members of families in their community during the holidays, purchasing gifts, clothing and necessities and delivering them. Among the recipients were 2 families with young mothers suffering from terminal cancer, both with young daughters. When one of the mothers passed away, LGEFCU staff helped pay funeral costs and utilities bills for the elderly caregivers left to raise the little girl....

DuTrac Community CU, Dubuque, Iowa, has earned a 1st-place national 1999 Dora Maxwell Social Responsibility award for its Kids Closet program. This program assists local families in need by providing them with basic back-to-school supplies and clothing. Young Savasaurus Club members, under age 12, assisted in collecting the school supplies, which later went to more than 500 kids. Fort Campbell FCU, Ky., announced during the annual Christmas Dinner that the top employees of 1999 include: Sue Cantu, Employee of the Year; Susan Laney, Supervisor of the Year; and Maria McKee, Manager of the Year. -...

California CU, Los Angeles, has bid a fond farewell to long-time Director Robert V. Way, who retired in December after 52 years of service. Way served on the supervisory committee from 1947-1975, when he was elected to the board. He was chairman of the personnel committee when he retired. "Bob has one of the most remarkable service records I've ever known," said board Chairman Robert Alm. "In his more than 50 years as a volunteer, his counsel, contributions, and commitment have added to the CU's success. We will miss him." MembersFirst CU, Pensacola, Fla., CEO Wayne Lowery announced his retirement in January after 30 years of service. He began as assistant general manager in 1970. "There is no single accomplishment I would like to showcase at the end of my credit union career...," Lowery said. "The sense of fulfillment that I take with me is found in watching a small organization, once called Escambia County Teachers CU, grow to become the MembersFirst CU of Florida we know today, an organization that has greatly impacted the community and the people in it. That achievement is not the result of just one person." NWA FCU, Bloomington, Minn., recently began construction on a new headquarters building in Apple Valley, scheduled for completion in Dec. 2000. Two hundred employees of the FCU will work there when it opens. NWA FCU has more than $750 million in assets....