U-Mass Five College FCU, Amherst, has awarded HBE Financial Facilities a $3.4 million contract to design and build a new home office. Project completion is scheduled for March of next year. U-Mass Five College FCU has $109 million in assets and serves 20,084 members. TRW Systems FCU, Hawthorne, Calif., has announced the grand opening of its new National Headquarters and Main Member Service Center located on Aviation Boulevard. TRW Systems FCU has $375 million in assets and serves 53,835 members. Telco Community Credit Union, Tacoma, Wash., has announced construction is underway for a sixth branch in the Westgate section. The 3,600 square foot building is scheduled for completion in October 2000. TCCU has $129.2 million in assets and serves 25,902 members. First Northern Credit Union, Chicago, Ill., has celebrated the grand opening of its new 5300 square foot branch office in Rockford. Designed by DEI, Inc. of Cincinnati, Ohio, the modern office offers a pod where members and financial service advisors can sit alongside each other, a "Moola Moose" play kingdom for small children and a "Compass Club" area complete with computer and video games for older teens. First Northern CU has $164 million in assets and serves 26,743 members. Columbia Credit Union, Vancouver, Wash., has announced the relocation of its Orchards branch. The new location will be in the Albertson's Home Base Shopping Center at the corner of SR500 and 4th Plain Blvd. The branch is scheduled to open August 2000. CCU has $356 million in assets and serves 49,892 members....

Members 1st FCU, Mechanicsburg, Pa., has recently celebrated its 50th anniversary. At the dinner-dance gala the credit union's time anniversary capsule was presented. Members 1st also held a member appreciation day which featured fun, games, refreshments and special gifts including anniversary T-shirts and photo buttons. Members 1st has $539 million in assets and serves 77,000 members. Permaculture Credit Union, Santa Fe, New Mexico has received its charter from the New Mexico State Financial Institutions Division. After three years working out the details, PCU is scheduled to open its doors by July 2000. The branch office will be located on the second floor of the State Employee's Credit Union. Upon opening its doors, Permaculture Credit Union will offer members savings accounts, certificates of deposit, vehicle loans and signature loans. Initial assets are expected to total between $1.5 million to $2.5 million....

DePaul Federal Credit Union and Maryview Hospital Employees Federal Credit Union, Norfolk, Va., have announced a merger effective July 1, 2000. The new credit union will be named Summit FCU. Milly Diaz will be the CEO of Summit FCU and Cindy Raney will be the assistant manager of Summit FCU's Maryview branch. The $2.14 million MHEFCU serves 1,253 members. DFCU has $7.23 million in assets and serves 1,603 members. Duncan Meter Employees Federal Credit Union, West Lafayette, Ind., has elected to merge with Purdue Employees Federal Credit Union. The merger has been approved by the National Credit Union Administration. At the time of the merger DMEFCU had $530,000 in assets and approximately 700 members. PEFCU President William Connors said he looks forward to serving the new members and that PEFCU is working to ensure a smooth transition. PEFCU has $265.6 million in assets and serves over 56,000 members....

Phase 2 of CUNA's credit union brand campaign slated to be released in August..............................................Page 4...

SACRAMENTO, Calif. - The state Assembly June 23 removed a key provision of a California Credit Union League-sponsored bill that provides a legislative and regulatory framework for state-chartered credit unions to open branches in foreign countries. S.B. 1472, introduced by Sen. Deborah Ortiz (D-Sacramento) and passed unanimously by the state Senate in June provided that all interstate or international expansions would be subject to the approval of the California Department of Financial Institutions, as well as the regulators of the other state or country. The bill, as amended deletes the provision relating to credit unions organized in other states and replaces it with separate, new provisions governing licensing of credit unions of other states and CUs of foreign countries that intend to do business in California. These provisions, among other things, would require deposit or share accounts of these credit unions to be insured "by the NCUA or other insurer," provide for various fees to be paid to the commissioner, allow the commissioner to examine the books, accounts, and records of the credit union, and provide for enforcement provisions. It also deletes a provision that would have allowed California regulators to decide field-of-membership questions for credit unions operating in the state with a charter from another state. - ekingoff@cutimes.com...

NEW YORK - Former Yankee pitcher Whitey Ford, NBC Today Show weatherman and personality Al Roker and U.S. Sen. Charles Schumer (D-N.Y.) may have been the Big Apple headliners at the New York Credit Union League, Inc. & Affiliates' (NYSCUL) 80th Annual Meeting and Convention, held at Manhattan's Marriott Marquis (right smack in the middle of Broadway and Time Square.) But the major show stopper of the five-day event was the announcement of William J. Mellin as the League's new president and CEO. The news of Mellin appointment came from League Board Chairman Al D'Orazio who said, "We are very pleased to have a leader of Bill's caliber within our ranks to assume the position. He knows the credit union movement thoroughly, and has shown himself to be both talented and effective during his years here as senior vice president/COO for CUC Mortgage Corp., an affiliate of the league." Mellin was named Interim President of the League earlier this month. He replaced R. Wayne Diesel who resigned from the league in May. "My goal as president and CEO will be to foster unity among New York's credit unions, and to assist credit unions of every size in taking full advantage of the rapidly changing financial services environment while maintaining our traditional `people helping people' philosophy," Mellin told attendees. Mellin's comment echoed the theme of the convention, "High-Tech with a Human Touch." The various education sessions held were a mix of technology and member service-type venues. The implementation of a successful technology strategy has more to do with the mix of technologies than the size of a credit union, offered Harold Fried in his session on "Best Technology Strategies." Citing results from a Filene Research Institute study, Fried explained that the "best" and "worst" credit unions all implemented the same number of technologies, but the mix of technologies was different. Also, the better performing credit unions spent less on technology. "The large inefficient credit unions bought the expensive solutions with all the bells and whistles," said Fried. The large-sized credit unions with better performance records were buying front-end office system technologies that involved direct member interaction, such as ATMs, Web sites, audio response systems, and electronic bill payment services, etc. On the back-end, successful credit unions were implementing technology pertaining to lending products while inefficient ones were busy implementing things such as local and wide area networks and human resource information systems. The patterns of success and inefficiency are the same for large, medium and small credit unions. Fried, however, said that mid-sized credit unions are caught in between serving a small loyal niche of customers, like their smaller counterparts, and wanting to grow and become larger institutions. In attempting to become large and offer more services mid-sized institutions often "pay the price and jump in way over their heads in regard to technology," said Fried. In wanting to become "big players," Fried related a story about a software representative who said he could usually sell anything to a mid-sized credit union. As a bit of advice, Fried told the audience, "When you play the high-tech game, look for technologies that directly involve members and that have been around a while." New York State political strategist Norm Adler was also on-hand to discuss how politics is conducted in Albany and how the credit union movement can thrive and get things done in the legislature (state and federal) through grassroots efforts. Explaining the latent power behind the League's individual membership number of 4.5 million people, Adler said, "There are 10 million registered voters in New York State. Of that number, 4.98 million voted for governor. Of that, 2.57 million voted for Pataki." Addressing the audience of League members directly, he said said, "With 4.5 million members, you are powerful." Judging from the applause he received from attendees, NBC Today Show weatherman and author Al Roker was an undisputable highlight at the convention. Appearing immediately after a live shooting of "Today," Roker, said right off the bat, that he was a member of the NBC Credit Union which is located on the seventh floor of the NBC building, "conveniently located next to the commissary," he joked. He segeud into his new book on fatherhood, entitled "Don't Make Me Stop This Car," by saying his dad was a longtime member of New York's Transit Union Credit Union. "Those were in the days when bus drivers made change," he quipped. The title of his book comes from his father's warnings when a younger Roker, along with his brothers and sisters, would agitate his father during long drives. "My father would whack us all with one back hand," said Roker. "He then would threaten to start dropping us off, one at a time, on the roadside . . . I have a brother I haven't seen in 14 years," he joked. -...

CHICAGO - The state Office of Banks and Real Estate and the Department of Financial Institutions proposed draft rules June 23 that would curb predatory lending and "protect consumers from unscrupulous and deceptive lending practices." The draft rules would apply to any home equity loan in which the APR is more than 10% over U.S. Treasury securities having comparable periods of maturity, and when the total points and fees payable by the consumer at or before closing exceed the greater of 8% of the total loan amount or $400. Among the provisions of the draft rulemaking, it would prohibit these lenders from making high-risk loans until the borrower's ability to repay was established and verified; require the lenders to report to the agencies semi-annually their default and foreclosure rates on conventional loans; and prohibit the practice of "flipping" in a 12-month period. Lenders would be required to provide full disclosure to borrowers of any pre-paid insurance products or warranties connected with the loan. The draft rule also provides a mechanism-the Mortgage Awareness Program (MAP)-for consumer education and awareness. MAP is a counseling and educational program certified by the Director or the Commissioner of the Office of Banks and Real Estate. The agencies intend to submit the rules to the Joint Committee on Administrative Rules (JCAR) on July 7. The agencies also intend to hold a public hearing on the rules shortly after....

WASHINGTON - Thus far the lion's share of the discussion about raising deposit insurance from $100,000 to $200,000 has occurred in the banking sector, however a little known bill has been introduced by a House member that would require NCUA to study the issue. Representative Charles Gonzalez (D-Texas) introduced H.R. 4603, the Deposit Insurance Increase Feasibility Act of 2000, on June 8, 2000. The bill would require the four federal banking agencies to do a joint study on the feasibility of increasing deposit insurance from $100,000 to $200,000; and the benefits and risks of such an increase on consumers, banks and the two bank insurance funds. The second part of the bill requires NCUA to do its own study on upping deposit insurance to $200,000 and to determine the risks on consumers, credit unions, the National Credit Union Share Insurance Fund and the Central Liquidity Facility. The bill calls for NCUA to complete the study six months from the bill's enactment date. CUNA is supporting the legislation. "We don't yet support the raising of the deposit insurance to $200,000, but we support doing a study on the issue. I think that reflects the genuine feeling of our government affairs committee that this is a complicated, multi-faceted issue," said John McKechnie, CUNA's vice president of legislative affairs. McKechnie said CUNA was pleased that Gonzalez's bill calls for the credit union study to be separate from the banking study. "That's in recognition that the NCUSIF is so unique from other federal deposit insurance programs," said McKechnie. The NCUSIF is different from the bank funds most notably in that it requires credit unions to contribute 1% of their insured deposits to the fund, while banks have a premium-based system based on risk. Bob Loftus, NCUA's Director of legislative and political affairs, said NCUA welcomes the bill and that NCUA even helped Gonzalez in the drafting of the bill. "We're following what's going on in the Hill. We are going to carefully ensure that credit unions are included if the limit is raised for the banks. However, I don't see that happening in the near future," said Loftus. Loftus said that the NCUSIF is in such great shape that if the limit was raised it would not necessarily cost credit unions any more money. "NAFCU's position is we'd like to keep insurance levels where they are now. If the levels were increased for the other players, we want the credit union insurance increased as well," said NAFCU's director of legislative and political affairs, Murray Chanow. There have been some bi-partisan bills already introduced in Congress that would raise deposit insurance to $200,000 in the banking sector. Just recently, however, some heavy hitters in the financial sector have come out strongly against raising banks' deposit insurance. Treasury Secretary Lawrence Summers said raising deposit insurance would weaken the underlying support of the financial system, saying investors and depositors would be less likely to do a thorough analysis of banks knowing that more of their deposits are backed by the federal government. Fed Chairman Alan Greenspan said the increase would provide more subsidies to wealthy Americans who have over $100,000 in deposits in accounts, and that it would put the bank deposit insurance funds at greater risk. Senate Banking Committee Chairman Phil Gram (R-Texas) believes an increase moves the risks from the investor to the federal government and eventually tax payers. Gramm thinks deposit insurance should be lowered to around $50,000. The Independent Community Bankers of America supports raising the insurance, saying there's a growing number of consumers who have over $100,000 in their accounts, and that community banks want to utilize the higher coverage levels to attract more deposits so they can fund more consumer and small business loans. The American Bankers Association also supports an increase, arguing that if indexed for inflation the $100,000 existing cap would be near $200,000. Smaller banks especially are supporting an increase because they believe it will help them attract more deposits by having a stronger guarantee for consumers. They also say it would help them compete against large banks that are often viewed as "too big to fail." Senator Tim Johnson (D-S.D.), who introduced a bill to raise bank deposit insurance, said it would give rural Americans an opportunity to invest in rural banks. He called it an important step for rural America to keep local wealth in these smaller communities. Many analysts believe banks are looking for a way to get back some of the money that is flowing into stocks and mutual funds. The FDIC's just-released Quarterly Banking Profile showed deposits in commercial banks fell for the eighth time in nine quarters to 72.4%. Since the issue has come up, many industry analysts point out that the increase in insurance deposit coverage from $40,000 to $100,000 in the early `80s was really a response to the S&L crisis, and that it may not even have been necessary. In the credit union industry, there doesn't seem to be any consensus about whether increasing deposit insurance would have a big impact on assisting CUs in attracting deposits. However there is an ongoing study going on the issue so to speak as a number of credit unions are already offering deposit insurance in excess of $100,000. American Share Insurance, Dublin, Ohio, is the largest provider of excess share insurance to the credit union industry. ASI currently provides excess coverage to some 260 credit unions. "I think conceptually the idea of saying credit union members don't have a lot of money is flawed. Increased deposit insurance can attract affluent members," said Nick Damopoulos, vice president of marketing for ASI. "Normally a credit union gets in this program and in less than a year they attract enough new deposits that they can offset any costs associated with this program," he said. ASI will insure accounts up to $250,000. It currently has $2.5 billion worth of excess insurance in force. It can provide excess insurance in 27 states. The average credit union engaging in excess insurance has an asset size of around $165 million. "It's somewhat restricted by size. The larger credit unions tend to have the members with dollars," said Damopoulus. He noted that since 1993 the number of CUs in ASI's excess share insurance program has increased by over 340% and the amount of shares by 400%. NAFCU economist Dr. Tun Wai said he has looked at the data on the 146 FCUs that have excess insurance, and the jury is still out on whether or not it is helping them attract more deposits because there is a chicken or the egg scenario to consider. "They did have an excess growth in deposits. The excess insurance did seem to attract more savings," said Wai. "The flip side of that is they also tend to have higher rates, so we do not know if it's the higher insurance coverage that is encouraging more saving, or is the higher insurance making the manager and the board feel more comfortable to offer higher rates," said Wai. Wai said some of the excess insurance CUs he talked to said they believe their boards feel more comfortable with the excess insurance, and tend to offer higher rates. He also said that the reason many of them obtained excess insurance last year was because of Y2K. Unless there were a flood of new deposits due to increased coverage, there likely wouldn't be much of an increase in insurance costs to credit unions given that 94% of all credit union deposits are currently covered by the NCUSIF, said Wai. David Chatfield, president of the California Credit Union League, thinks more work should be done in the banking industry before deposit insurance is raised. "As Chairman Greenspan pointed out, doubling the limit on federal deposit insurance for banks would amount to giving increased subsidies to upper-income individuals, and could lead to riskier behavior by banks," said Chatfield. The California League has asked NCUA to work with the FDIC on looking at the feasibility of raising deposit coverage. "If the banking industry wishes to double the FDIC cap, it should be willing to pay for it. Credit unions have established a superior precedent in providing more than adequate capitalization for our own deposit insurance fund. Banks should do the same." Another argument against not raising deposit insurance from a consumer's perspective, is that the consumer can put money in federally insured accounts at other institutions. Analysts say because of that ability, raising the insurance level will never be a true consumer protection issue. -pgentile@cutimes.com...

The future of branches, lending on the Net and wealth management were among the items on the CUES Annual Convention agenda...............................................Page 7...

BOISE, Idaho - The Idaho Department of Finance along with the Federal Trade Commission and other state and Canadian provincial agencies has launched "Operation Advance Fee Loan 2000" to rein in telemarketing companies and individuals allegedly involved in promising consumers loans and credit cards for an advance fee, but never deliver them. From Sept. 1999 to June 2000, nearly 4,000 consumer complaints against advance fee loan scams were entered into Consumer Sentinel, a multi-agency law enforcement investigative cyber tool, said the Department of Finance. These scams cause nearly $1 million in annual consumer injury. Gavin Gee, director of the Idaho Department of Finance warned consumers, "Don't pay for a promise" and reminded them that it's illegal for lenders to ask consumers to pay for credit before they receive it....

AUSTIN, Texas - The seven-person state legislative advisory committee plans to recommend revisions to the Texas Credit Union that would prohibit occupational or association credit unions from applying to also be community-based CUs. Unlike federal credit unions, state-chartered credit unions in Texas are allowed to be occupational, association and community-based CUs concurrently. Harold Feeney, credit union commissioner explained that the committee based its recommendation on the fact that community-based CUs have more business issues and overlap protection issues than the other types of charters. So it makes sense to keep community-based CUs separate. The committee will formally make its recommendation at the commission's next meeting in July. If the commission accepts the recommendation for publication, it will go out for a 45-day comment period. Once it's accepted, it will go into effect 20 days afterwards....

WASHINGTON - Companies and individuals making tons of money offering online gambling, were dealt a bad hand at press time. The House Banking and Financial Services Committee approved a bill that would make it illegal for an Internet gambling site to accept instant checks, credit cards, debit cards or wire transfers from consumers as payment methods to place bets. According to the National Commission on Gambling, the amount of money bet on the Internet has doubled annually in recent years. The commission predicted that by next year $2.3 billion will be bet over the Net. "And while in most instances, non-Internet gambling requires a person to take some sort of action before placing a bet-such as traveling to a casino ... Internet gambling can be entered into easily and losses can be manifestly difficult for the wagerer and his or her family," said House Banking Committee Chairman Jim Leach (R-Iowa). The bill H.R. 4419, the "Internet Gambling Funding Prohibition Act," includes an amendment that says the restrictions are only for betting that is unlawful under state or federal law....

MONTREAL-The Association of Credit Union Internal Auditors (ACUIA) is challenging credit union internal auditors and supervisory committee members to go "Beyond the Boundaries" with its tenth annual conference, scheduled for September 26-29 here. The opening keynote speech will be given by Bob Hoel, executive director of the Filene Research Institute. Hoel will take the futuristic approach, as in "What's ahead for credit unions?" and will back it up with recently published research studies from Filene, to outline the competitive, legal and technical challenges faced by CUs in the new millennium, and how to cope successfully with them. Several sessions are devoted to the cyber front, including hacking of Web sites, invasions of privacy, e-risks and security issues and electronic banking compliance. Fraud, scams and bad checks, as well as fictitious loan schemes and how to spot them will also be featured on the program. Barb Loesher, fraud expert, Bruce Jolly, a CU specialist attorney with Shook, Hardy & Bacon, and Deborah Humbert, CUMIS Insurance Society senior risk management specialist, and Elliot Leary and Jim Trimbach, from the FBI Training Academy are among the featured presenters. For information about the conference, call ACUIA at 614-523-3667....

HIALEAH, Fla.- FPL FCU has become a member and stockholder of the Federal Home Loan Bank of Atlanta. As a member, the $226-million credit union will have access to an additional source of funds for home financing and community development. It will also be eligible to use the credit and corresponding banking services of the Federal Home Loan Bank of Atlanta. Of the 1,000 financials that are members of the Federal Home Loan Bank of Atlanta, there were 69 credit unions that were members, as of May 31....

BROOKFIELD, Wis. - Fiserv has promoted Joe Barry to president of USERS, one of its credit union data processing subsidiaries. Barry previously served as vice president of sales and marketing for USERS. He joined USERS, located in Valley Forge, Pa., in 1976 and has held a variety of positions. Prior to the vice president of sales and marketing position, Barry served as national director of sales. "Joe has been with our organization for over 20 years, and has played a significant role in strategic planning and positioning, new business development and corporate communications for this business," said Tom Neil, president of the Fiserv Credit Union & Industry Products Group. The move is one of many recently in Fiserv's credit union division. Earlier this year Greg Derkacht, who himself is a former USERS' CEO, left his position as president of Fiserv's Credit Union Systems Division. Derkacht joined Sanchez's e-Profile subsidiary as CEO. Dave Schlenker vacated the CEO position at USERS to join Derkacht's e-Profile group. Other moves involving a Fiserv credit union division include the departure of long-time XP Systems CEO Ed Harris, and of AFTECH CEO Bill Guiney....

AUSTIN, Texas-Credit unions grappling with privacy compliance issues now have a resource in the recently published manual from Sheshunoff Information Services, a leading provider of compliance and management information, and NAFCU, the trade association for federally-chartered credit unions. "Protecting Member Privacy: Management Process from Policies to Quality Control Checklists" was designed to help CUs avoid the pitfalls of handling member data. Written by Jerry Miller, president of Regulatory Compliance Associates, a former federal agency examiner, it contains model privacy statements, policies and procedures, checklists and hands-on tools that can be adapted for any credit union. An accompanying CD contains a complete table of relevant agency issuances, each with a brief description. Web policies are also covered. The manual costs $365 and includes a full year of updates. For more information, see (www.sheshunoff.com)....

SEATTLE-The National Association of Attorneys General (NAAG) may have an ironical acronym, but their summer meeting here took its theme from a very serious consumer issue these days-privacy. Hosted by Christine Gregoire, president of NAAG and the Emerald State's attorney general, the meeting was attended by more than 30 state AGs, who listened intently to invited experts. All sides of the privacy debate were heard. That AGs have been taking on a more `activist' approach of late is not lost on them, (tobacco settlements were initiated at the state level, and 19 states and the federal government worked together in the Microsoft antitrust suit, for example) but it stems from the demand they hear at home to `do something' about the erosion of personal privacy, they claim. Then, there is the states rights side of things to consider. Gregoire said that AGs are very close to consumers. "They get calls from them every day," she said in an interview with The Olympian newspaper. "I think the dedication of this meeting totally to privacy is a reflection of what AGs are hearing back home, on the ground, in their offices." Privacy advocates attending the meeting said they don't expect much from Gregoire's plan to craft the "essential ingredients" of any privacy legislation Congress might consider and present it to them with the backing of the nation's attorney's general. The business lobby is too powerful, they said, and would defeat proposed legislation both nationally and in state legislatures. That happened here last winter and in 40 other states. While several privacy bills languish in Congress, the odds on them getting out of committee in an election year is seen as dim. With a presidential and congressional election ahead, it may be better for politicians to be free to make empty promises rather than risk losing the support (and financial contributions) of the banking, insurance and securities industries, they said. Last February, Michigan Attorney General Jennifer Granholm filed notice of legal action against DoubleClick Inc., a Web banner ad placement firm. A lawsuit may soon follow if negotiations do not result in a settlement. Granholm also filed notice recently of intended legal action against operators of other Web sites that collect consumer information and share it with others without knowledge or consent. Several of the panels conducted at the meeting discussed the use of "cookies," those data tracers that are placed on a computer's hard drive. Some of them can remain active for as long as 20 years, one panelist informed. Paul Misener, Amazom.com's vice president of public policy told the AG audience that "We don't think any rules are necessary beyond what exists today: That you tell the truth." He advocated a standard of industry self-regulation. A report in the Seattle Post Intelligencer said that Microsoft had held closed-door meetings with the AGs that a spokesman for the software giant termed "productive." -caburger@cutimes.com...

ST. JOSEPH, Mich. - Berrien Teachers Credit Union here has made electronic commerce the focus of its newest branch. "We decided that this progressive community was the ideal place to start emphasizing the convenience of electronic commerce," said Bob Mackay, BTCU's general manager. The new branch features a PC Home Finance Center and a new Financial Services Kiosk. Members can do virtually any transaction they can do with an employee with these two electronic tools. "These new electronic systems are designed to provide faster service for those members who have been asking for do-it-yourself financial services," he said. The credit union will hold an open house sometime this summer to demonstrate the branch's electronic capabilities. The branch also features drive-thru and walk-up ATMs....

ORLANDO, Fla. - Fairwinds FCU here is the latest credit union to go wireless. Joining the ranks of The Golden 1 CU, Sacramento, Calif., USE CU, San Diego, and others, Fairwinds is offering its members the ability to visit its Web site using a wireless device. While some credit unions are using Web-enabled phones to provide wireless access, Fairwinds will offer wireless access via the Palm VII personal digital assistant. Members will be able to access ATM and branch locations, current rates, and other credit union news viewing wireless "clips" of Fairwinds' site. To utilize the service members need to download FAIRWINDS' Palm Query Application (.pqa) and install it on their PALM VII....

TINTON FALLS, N.J. - United Teletech FCU here has installed two new self-service kiosks. One is located in the credit union's main branch in Tinton Falls, while the other is at an AT&T facility in Middletown, N.J. Members can use either a keyboard or touchscreen to perform transactions; shop for a car; find branch locations and hours; research credit union products; track the latest interest rates; and non-members can find out if they are eligible to join the credit union. Members do need their ATM cards to access the kiosks, and their home banking password to access transaction services at the kiosks. The credit union serves 25,000 members and has $192 million in assets....

GLASTONBURY, Conn. - Open Solutions Inc., an Internet solutions provider serving the financial industry, has acquired the e-commerce product line of NDC eCommerce, Atlanta. NDC eCommerce is a provider of electronic commerce and Internet banking solutions. Open Solutions will acquire the company's Internet Banking and "Bank on It" product suites in exchange for cash and stock. The products will be rolled into Open Solutions' Open Community Network (OCN) e-commerce model, a suite of software and services designed to help financials strengthen their e-commerce channel. Open Solutions will also acquire NDC eCommerce's current Internet banking clients and prospects. "This acquisition will enable Open Solutions to field a stellar e-commerce product suite," said Mike Nicastro, vice president of Marketing and Business Development. "When integrated with the current features of the Open Community Network, community financial institutions have an e-commerce solution that speaks to all of their consumer and commercial end users' needs." -pgentile@cutimes.com...

BEAVERTON, Ore. - Internet solutions provider Corillian Corp. here has named John McCoy, former Bank One CEO, as its non-executive chairman of the board. McCoy is a 30-year veteran of the financial services industry who was a key player during the initial phases of Bank One's online bank subsidiary, Wingspanbank.com. McCoy retired from Bank One this December. At that time the bank was suffering some profit hits from its once legendary credit card unit First USA Inc. For years First USA was looked at as the model credit card operation. "His experience, perspective and understanding of the financial services industry will be a key asset for us to help achieve our goals," said Corillian CEO Ted Spooner. The company also announced that Spooner will now assume the president position in addition to the CEO position. Former president Kimberly Wright becomes managing director of global development for Corillian. Spooner has a strong credit union background, serving as chief financial officer for First Technology CU, Beaverton, Ore., from 1986 to 1994....

MADISON, Wis. - The CUNA Technology Council's 5th Annual Technology Summit will take place August 9-12 in Colorado Springs. The summit will feature a wide array of technology-related breakout sessions on topics that the council has identified as important to credit union technology professionals. The following are some of the topics to be discussed: regulator concerns about e-services; data warehousing; tools for bringing members online; e-disclosures; next generation Internet; and electronic bill presentment. The following are some of the featured speakers: * Randy Harrington, CEO, Extreme Arts & Sciences, Eugene, Oregon, discussing the changing role of IT leadership in competitive credit unions. * Kim Anderson, Leader for Global Corporate Development, e-Funds Corp., Milwaukee, discussing the future of e-commerce in the credit union movement. *Tim Lerew, Senior Director of Corporate Marketing, Edify Corporation, Santa Clara, California, detailing emerging technologies in financial services. *A panel discussion regarding competition brought on by new technologies will feature Brian Warfel, Vice President, FPL FCU, Hialeah, Florida; Bruce Cormode, president/CEO of Symitar Systems, San Diego; Dave Palmer, CEO, CU Processing, Southfield, Michigan; and Bill Anderson, president/CEO, XP Systems, Moorpark, California....

ATLANTA - John H. Harland Company said that beta testing of its financial.centerT, the company's Web-enabled loan and deposit origination software, is nearing completion. The product is expected to be ready for release by July 2000. Financial.centerT accepts electronic applications; generates loan and deposit documents that are compliant in all 50 states; facilitates the opening of deposit accounts; and delivers sales and marketing information to the platform. "Fingertip access to complete customer information throughout the entire enterprise, combined with one-to-one marketing tools and compliance documentation, will be a competitive advantage for any financial institution," said John O'Malley, vice president of Harland Software. Financial.center features Web-based architecture browser access as well as the capability to feed customer information from the Web to its MCIF or data warehouse systems....

CEDAR RAPIDS, Iowa - The Web is a cheap and easy way for credit union professionals to go to school. BVS Performance Systems, Cedar Rapids, Iowa has introduced three new credit union-specific Internet training courses. They include "Truth in Savings for Credit Unions," which covers the requirements of NCUA's Truth-in Savings regulation; "Cross Selling Credit Union Products," which covers cross-selling opportunities; and "Serving Credit Union Members," which is designed to assist credit union employees to better serve members. "Our credit union subscribers tell us Truth in Savings is one of their biggest training challenges," said Roy L. Karon, president and CEO of BVS Performance Systems. "They also point out that they are really focusing on cross-selling and member service BVS now offers 99 online courses in its Net-accessible library of financial services training courses. For more information visit www.bvsinc.com....

TUSTIN, Calif. - Credit unions are fast finding that electronic surveys are a cheap and easy way to find out what members are thinking. Scantron Corporation, Tustin, Calif. has introduced eListenT3.0 (www.elisten.com), a new platform release of the company's electronic survey and data collection software system. The new version provides financials with software tools for all major survey deployment and collection methods from a 32-bit Windows-based application. The eListen 3.0 version allows users to preview the look-and-feel of a survey on the Web, e-mail, network, or paper during the survey building process. Surveys can then be distributed to one or more of the channels and responses are collected in databases for analysis....

NEW YORK - According to a report in the American Banker, banks are feeling the pressure from insurance companies getting into the banking game. The National Association of Mutual Insurance Companies opened Assurance Partners Bank of Camel, Ind., recently. According to the report, the newly formed thrift expects to have $100 million in assets in just a few years. The new thrift has serious capital behind it given that some 262 members of the National Association of Mutual Insurance Companies invested in Assurance Partners Bank. It's not the only thrift started by a network or association of insurance agents and companies. State Farm of Bloomington, Ill.also has one, and the Independent Insurance Agents of America is awaiting thrift approval. The groups are said to have a competitive advantage in that they can utilize their networks of insurance agents to push banking products....

WASHINGTON - At press time, executive officers of banks were set to meet with FDIC Chairman Donna Tanoue in Kansas City to discuss deposit insurance reform. The meeting was being held from June 28-29. Raising FDIC deposit insurance coverage from $100,000 to $200,000 is an issue first raised by Tanoue back in March during a speech (See page 1 story for more information). The meeting is co-sponsored by the FDIC, the American Bankers Association, America's Community Bankers, the Independent Community Bankers of America, and the Conference of State Bank Supervisors, the association of state bank regulators. Many of these groups are in favor of raising deposit insurance coverage. -pgentile@cutimes.com...

GRAND PRAIRIE, Texas - Loan Link Lending Center, a division of State National Companies, has passed the 100 financial client milestone, with the bulk of them being credit unions. The center, formed in 1996, provides 24x7 telephone and Internet loan processing. Loan Link recently unveiled a 60-second Internet lending solution. According to Michelle McBride, account specialist for the Loan Link Lending Center, approximately 11,000 applications come into the center each month. Call center employees spend most of their time with consumers who didn't receive an instant loan approval. The center is set up so that each credit union has a distinct toll free number into the center. When a member calls using their credit union's specific number, call center reps know what CU the member is calling from and then pulls up that CU's lending criteria. In the first quarter of 2000, the center added 12 new credit union clients. Together the assets of the center's 100 clients is approximately $3.8 billion....

ST. PAUL, Minn. - Computerworld magazine has named Minnesota Life Insurance as one of the "100 best places to work in IT." It was the fifth consecutive year the insurance company earned the rating. Diverse work assignments, employment policies that recognize the need for personal and professional life balance and competitive salaries were among the attributes that earned the company the 26th ranking, according to Minnesota Life. "Minnesota Life is very people-oriented," said Jean Delaney Nelson, vice president, Information Services, "and that orientation extends to the IS department. We offer our associates balance between their professional and personal lives as well as numerous opportunities for professional development." In 1999, the turnover rate among IS professionals at Minnesota Life was less than 9%- the industry rate is around 17%....

WORLD WIDE WEB - A new study by CIGNA indicates that employees want to be able to view their pension information online. CIGNA surveyed 1,013 employees nationwide in June. Some of the significant findings include the following: * Of employees who have Net access at home, 35% can get access to their retirement information online. * For employees who have Net access but can't view their pension information online, 38% want to do so. * Employees aged 18 to 24 have the greatest interest in receiving pension information online with some 38% saying they want access. That compares with 35% of employees aged 35 to 49 who wanted the access; 32% aged 25 to 34; 29% aged 50 to 64%; and 28% over age 65....

ENGLEWOOD, Colo. - CUNA Mutual Group and cavion.com have announced a partnership that will enable credit unions to provide members with instant online loan approval. Under the deal CUNA Mutual Group's loanliner.com online loan application will be integrated with cavion.com's Internet lending software, CUiLOAN. CUiLOAN is part of a current loanliner.com beta test. "LOANLINER forms have been a credit union industry standard for 20 years," said David J. Selina, President and CEO of cavion.com. "Cavion will make loanliner.com the default loan application set for CUiLOAN because of LOANLINER's ease of processing and field-proven, 50-state compliant forms." Using the interface to CUiLOAN, loanliner.com applications will be used with loan decision engines such as Experian Credit Union Decision Engine (CUDE), Experian Strategist or CyberBranch, to offer a loan approval online within seconds, said Selina. CUNA Mutual launched loanliner.com in February. At press time, 197 credit unions have signed up to use the new tool....

CEDAR RAPIDS, Iowa - Knowing what consumers say to emloyees and what they said, is becoming the big customer service trump card in the financial services and insurance industries. The FREEDOM Group, a unit of Fiserv, Inc., has introduced FREEDOM Lifeline, an Internet-based service for insurance companies to support and train agents on product features and benefits. It is a Web-enabled help desk solution that provides sales and service information. The FREEDOM Lifeline system gives insurance agents access to a searchable knowledge base drawn from previous sales and service requests. If a search doesn't produce the information needed, the agent can request support through an online form or e-mail. Support requests are automatically routed to the most appropriate representative. When a representative accepts the support request, the agent and the representative communicate via real-time online chat or Web-based question-and-answer exchange. A complete conversation history is retained. When the request is resolved, any reusable information is extracted to update the searchable knowledge base. The FREEDOM Lifeline system tracks the number of support requests posted by individual agents by product Because agents constantly present new information and questions, the FREEDOM Lifeline system immediately incorporates new data into an insurance company's Web site....

ELGIN, Ill. - Stewart & Associates, a division of CUNA Mutual Group, announced that there are new enhancements to the MEMBER'S CHOICE AutoCare Mechanical Repair Coverage. The new enhancements include the following: * 24-hour, toll-free roadside assistance, * Trip-interruption coverage, * More flexible terms, * New money saving premium options, * Increased rental reimbursement. The new flexible terms now include coverage from between 12 and 84 months and 12,000 to 100,000 miles from date of purchase. "We've incorporated several new advantages requested by members and have made adjustments in some areas, which reflect modifications within the industry," said Mike Chatterton, sales manager for MEMBER'S CHOICE AutoCard....

WASHINGTON - With fraud experts estimating that some 400,000 Americans are victims of identity fraud each year, identity theft insurance is becoming a viable product. Travelers Property and Casualty Insurance now has identity theft coverage available. The coverage includes the following: *Lost wages as a result of time taken off from work to deal with fraud, with coverage of as much as $500 per week for four weeks. *Notary and certified mailing costs for completing and delivering fraud affidavits. *Fees for reapplying for loans that were declined due to erroneous credit information. *Phone charges for calling merchants, financial institutions and law enforcement agents to discuss the fraud. *Some attorney fees. The coverage can be added to any Travelers homeowners or rental policy for $25 a year. It provides $15,000 worth of coverage and has a $100 deductible. It is available in 20 states....

The bankers lobby is at it again. For 20 years there have been record profits in the banking industry, and yet the only thing American bankers agree on - other than charging outrageous fees to consumers - is that credit unions should be done away. Ken Fergeson, chairman of the National Bank of Commerce in Altus Oklahoma, and chairman-elect of the American Bankers Association Governmental Affairs Committee recently launched biased accusations against America's credit unions. The reason for the sour grapes? Bankers lost on appeal an attempt to impose their version of membership rules on the NCUA, the regulator for federally chartered credit unions. The bankers' version would limit growth of credit unions forcing consumers from credit unions into banks. This is very interesting considering the record growth in banks and bank salaries. In a May 3-article, Credit Union Times quoted Fergeson saying, "a society where credit unions' ideas are carried to the extreme would have no government. It would have no social services." Fergeson even had the unmitigated gall to claim credit unions "are parasites. They live off the rest of society. They are non-productive and contribute nothing that is good for anyone other than themselves." What is the reason for his attack? Both federal and state chartered credit unions are exempt from income taxes. They are also exempt from the provisions of the Community Reinvestment Act. CRA requires banks to reinvest a portion of their earnings back into the community from which they are taken. Every credit union I have worked for in Idaho already does that without a legislative requirement for it. If you look into the legislation, this was imposed on banks because, in bank-like fashion they would not police themselves or contribute back to communities without being forced to do so. Credit unions do not pay taxes because they are legally recognized not-for-profit organizations. What the ABA doesn't want consumers to know is that when they deposit in a bank, they have no say in the operations or policies of that bank. The same consumer in a credit union can vote directly for the board of directors who serve without salary for the benefit of the organization and set the policies for its operations. This has the effect of making the credit union answer directly to the local community because it is controlled by persons within the community. It is a form of democracy in the marketplace which bankers refuse to acknowledge. It is curious that they continue to weep for "a level playing field" and advance the false logic of a failed argument. Credit unions are not subsidized by the Federal government in spite of a constant barrage of propaganda by the ABA. Bankers constantly weep about not having a level field because they do pay taxes. Their version of a level playing field is one without limitations on the fees or interest rates they would charge consumers. Where can you find no fee ATMs? Don't try your local bank. If you don't have an account with the bank whose ATM you use, you will pay up to $2 in fees for a transaction. You may even be billed the same for speaking to a teller at your bank. The credit union for which I work is so small we don't have an ATM, but other larger credit unions allow our members to use theirs without fees. Level playing field indeed! A recent bank merger in Idaho Falls illustrates the point of enormous profit taking by bankers like Mr. Fergeson. The retiring president of First Interstate Bank, recently merged out of existence in the Idaho Falls area, took nearly $29 million dollars in personal bonuses even while closing 12 branches and moving loan decisions out of state via the merge partner! His personal income from the transaction was more than the assets of any credit union in Idaho where I have worked! Yes credit unions do not pay income taxes, because credit unions do not work for profits, they work for people! A credit union is a cooperative working for their members who do pay taxes. There are 70 million consumers who belong to credit unions in the United States. And no matter how much the ABA repeats it, if it weren,t for credit unions, all consumers would be paying 30 to 50% higher rates for loans from bankers would be laughing at them all the way to their bank! Why don't credit unions pay taxes bankers ask? Ask Congress, they advise you. Well I say, don't ask Congress, thank Congress! Every one of the current Idaho congressional delegation voted for the very rules the ABA wants to throw away. In all my years as an employee of any firm, we never had a single visit by a congressional representative until Mike Simpson visited my office a year ago. Thanks for voting for credit unions Mike. Many Idaho Falls families appreciate your courage to keep democracy in financial institutions. Mr. Fergeson, thanks for making our argument for us. America's credit unions, where people are worth more than money! Phil Sorensen Manager Idaho Falls Teachers Credit Union...

Here are some highlights from Credit Union Times this week five years ago: * A NAFCU survey on the possibility of accepting state-chartered FCUs as members showed that more than half of state charters were interested in affiliating with NAFCU. * Also that week, Mid-States Corporate FCU announced that it had established a presence on the World Wide Web, which was groundbreaking for a corporate in those days. * CUNA Mutual Group was on the verge of assuming full ownership of the $4 billion CUNA Mortgage Corp. servicing portfolio. * U.S. Central and CUNA released a three-page statement about U.S. Central's CAMEL 4 rating. The statement said U.S. Central was safe and sound; had no problems meeting liquidity needs; had $225 million in reserves; and was anticipating hiring a new CEO in July. * NCUA had just started shipping free computers to small, non-automated CUs. In all 447 computers were given to small CUs....

Congress took a big step toward growing e-commerce by passing electronic signature legislation last month, but questions remain about security of the new technology, which will allow credit unions to do business more efficiently on-line. With hardly a dissenting vote Congress, on June 14 and 16, passed the Electronic Signatures in Global and National Commerce Act. The measure has been sent to President Clinton, who has indicated he will sign it. The new law recognizes electronic contracts, signatures and disclosures as equivalent to those in writing on paper, with only a few exceptions. It removes a major impediment to the development of a full-blown e-commerce economy. Without this kind of legislation, the Internet age would remain significant mainly for its ability to provide information rapidly and broadly. Recognizing electronic contracts, signatures and disclosures will permit the on-line consummation of most forms of commercial activity and may eventually lead to a significant decline in brick and mortar facilities. In fact, it is safe to say that most businesses are not yet prepared to take full advantage of their new opportunities for "electronic contracting." An important point of this legislation is that it does not make all contracts with electronic signatures legally binding. Under the new law, a signature, contract or other record of a transaction cannot be denied legal effect solely because it is electronic. That's a long way from saying that all electronic contracts and signatures are enforceable. Whether or not a particular contract will be enforceable, will still be determined by state law. The Electronic Signatures in Global and National Commerce Act specifically avoids endorsing any particular hardware or software. In other words, it is technology neutral. This means Congress is leaving it up to computer scientists and engineers to find ways to conclusively connect an electronic signature with a specific person. Potential choices include digital signatures (a type of electronic signature using an asymmetric cryptosystem - public and private key), biometrics (retinal scans or thumbprints) and electronic signature pads. This will be the next big challenge in electronic commerce. Credit unions will understandably be nervous about fraudulent use of electronic signatures. To allay those concerns, CUMIS Insurance Society, Inc. will be adding an "Electronic Crime-Loan Endorsement" to its forgery coverage under CUNA Mutual Group's bond program on Aug. 1, 2000. This optional insurance coverage will initially cover only digital signatures that use an asymmetric cryptosystem. It protects a credit union if a person other than a member obtains account information and creates an unauthorized loan, or alters the terms of an existing loan, through the use of a digital signature. It also provides coverage for hacker intrusions. When a law requires that a consumer receive disclosures in writing, they may be provided electronically only if the consumer agrees after receiving certain disclosures. Consent may be obtained electronically, and, if it is not, the consumer must confirm his/her consent electronically. Whether the consumer consents electronically or confirms consent electronically, it must be done in a manner that reasonably demonstrates that the consumer can access information in the electronic form will be used to provide the disclosures. This means members should be asked questions that enable credit unions to determine whether the members have the hardware and software necessary to view and retain the information that will be provided electronically. The new legislation also permits retention of electronic records, instead of paper documents, in most cases where there is a legal requirement to retain a contract or record. Even checks may be retained in an electronic format. The law requires that the electronic record be reproducible for later reference, and the consumer must also be allowed to retain an electronic copy if desired. There are, however, certain exceptions, such as court documents; notices of health and life insurance terminations; adoption, divorce and other family-law papers; and notices that threaten the primary residence of an individual. These will continue to be paper documents. The law will take effect Oct. 1, 2000. The record retention provisions, however, are effective March 1, 2001, with a possible extension in some cases to June 1, 2001. You'll be hearing a lot more about electronic signatures and related aspects of electronic commerce in the weeks and months ahead....

It seems that every time a woman in business moves into the CEO's office, the words "glass ceiling" resurface. With good reason. In credit union circles, for example, the glass ceiling is still firmly in place. How have women armed with glass cutters done at the CU level? Not very well. In numbers, there are a lot of women managing credit unions, but don't be misled. A high percentage of female credit union CEOs can be found managing small credit unions. It's sad but true that many women will still work for less money than men. It is well-known that managing a small credit union is about the very last way to get rich. Men can't, or won't, take on the job of managing a small credit union for pay which in some cases is barely above the minimum wage level. Women, some women at least, will do so. Thus, it's really no great mystery why most small credit unions are headed by women. It has nothing to do with ability. Sometimes it is more difficult to manage a small "one-woman-band" credit union than a fully-staffed larger CU. It has to do with pay! And the willingness to work far harder than the compensation warrants. In terms of the glass ceiling, do any of these women eventually move up to manage larger credit unions after proving they have the smarts to do so? Almost never. They usually stay put for the duration of their CU careers. Let me hasten to add that the number of women managing mid-size credit unions is finally starting to grow. And over the years there has always been a somewhat static, modest number of women managing large, even very large, credit unions. So where do these women CEOs come from and how did they navigate their way through the glass ceiling? I just said that it is not likely that they were hired away from a small credit union. Instead, the answer is twofold: they either grew the credit union on their own, or they grew with a credit union. Let's first look at growing a CU. There are many examples of women who began their careers with credit unions that started in a shoe box. Years ago one well-known, respected, and very successful female credit union CEO told me that in the very beginning, when she went to the ladies room, the credit union went with her. She was the only employee. The credit union was literally in a shoe box. Thanks to her management and people skills, it wasn't long before the credit union began growing. It took many years of long hours and hard work, but eventually she became the CEO of a good-size credit union. To achieve that plateau, she didn't change jobs. She created her own opportunity at her original credit union. As it grew in assets, members, and staff, she grew with it. She didn't have to crash through any glass ceiling. There are many such stories. Many of these successful female credit union CEOs are still on the job doing great things for their members. And in the process, doing quite well for themselves as well they should because they are today managing large and successful credit unions. But there are a couple of downsides to this scenario. Here comes that glass ceiling again. For one thing, these women aren't making as much as their male colleagues managing similar size credit unions with similar experience. For another, what happened at the credit union these women built from ground zero when they retired? Almost all were replaced by a man. It's a pretty good bet that those still on the job will also find a man sitting in their chair when they step down. This example might indicate part of the reason. I once heard a board chairman of a credit union built from scratch by a great lady, make the following statement as she was nearing retirement: "Now that this credit union is so big, it's going to take a man to run it." How awful! How many other men in positions of power are out there who harbor these same prejudices? Since we are talking about the credit union industry, take a look around at some of the state and national credit union organizations. For example, at first there were no women heading up state leagues. Then one, later two, got the nod for the tiny leagues. Today, sharp women are appearing as CEOs of larger leagues. What about the staffs of all the national credit union organizations? Look at the top management organization chart. You might be surprised. Besides creating their own opportunities, another way many of today's female credit union executives side stepped the glass ceiling and reached the top was by moving up the ranks at their current credit union. As they took on greater responsibilities, these women were able to demonstrate their considerable managerial skills. They have been fortunate enough to work in a credit union where ability mattered and gender didn't. They cracked the glass ceiling with an outstanding track record during years of service to their credit union. Today some of the sharpest and most capable credit union executives are the hundreds of women on senior management teams of the nation's highest-profile and most successful credit unions. These women are so good that they also could very easily transition into the credit union CEO spot at hundreds of credit unions overnight without a ripple. Will they? Probably not. At least not until the credit union industry admits that the glass ceiling is still a reality. Not until male-dominated credit union boards put gender aside and seek out the most qualified individuals available to run their credit unions. No credit union is too big for a woman to manage. As more women get to prove it, watch out for broken glass! Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com....

Fairwinds Credit Union, Orlando, Fla., has named Urjit Patel sales manager and Marcie Hill marketing specialist. Coastline Federal Credit Union, Jacksonville, Fla., has elected the following members to its board: M. Elaine Hall, chairman; Donald Becker, director; and Joe B. Tamplin, supervisory committee chairman. In addition, CFCU has named Tina Gilette vice president of human resources and Boyce McClain vice president of marketing. Community Educators Credit Union, Rockledge, Fla., has named Steve Kenyon manager of the Melbourne branch....

Michigan Credit Union League, Northville Township, has named John Rupert consultant. CEFCU, Peoria, Ill., has elected the following officers to its board: James Gleich, chairman; Marylean Abney, vice chairman; Bruce Dimler, vice chairman; Michael Morrison, vice chairman; Eldon Arnold, president-treasurer; George Huthmann, secretary; Harold Collinson, director; Patricia Hampton, director; Richard Hermann, director; David Koehler, director; Robert Metzinger, director; Thea Robinson, director; Everett Shue, director; John Siefken, director; Nancy Skender, director; Reed Stuedemann, director; and Helen Young, director....

Card Services for Credit Unions, a credit union card processing association, President Robert Hackney has announced the following members of the CSCU 2000 board: Motorola Employees CU President/CEO John Fiore, chairman; Educational Community CU President/CEO Robert Hunt, vice chairman; North Florida Education CU President/CEO Ray E. Cromer, secretary; Toledo Area Catholic CU President/CEO Patrick McGrady, treasurer; New Mexico Educators FCU President/ CEO Joseph S. Coey, director; United Airlines Employees' CU President/CEO Robert Bream, director; SCE Federal CU President/CEO Dennis Huber, director; Team One CU President/CEO Konnie Werner, director; and Teachers Federal Credit Union President/CEO Robert G. Allen. The Members Group, a financial services organization, has promoted Darron Dunn from card services specialist to card services project manager. In addition, the Members Group has named Julie Feller card services training and documentation specialist. Alliance Funding, a mortgage provider, has promoted Pura Kahn to project manager of the Hispanic marketing initiative....

Cannon Electric FCU, Santa Ana, Calif., has promoted Sandra Bustamante to branch manager of the Santa Ana main office and Cecilia Baras to branch manager of the Whittier Narrows office. Hawaii State Federal Credit Union, Honolulu, has named Ryan Shibuya administrative manager. Educational Employees Credit Union, Fresno, Calif., has promoted Phyllis Brown to ATM operations manager and Rochelle Martin to computer operations manager. Cabrillo Credit Union, San Diego, has promoted Joel Hudson to chief financial officer and Anne McClure to senior vice president....

U-Mass Five College FCU, Amherst, has awarded HBE Financial Facilities a $3.4 million contract to design and build a new home office. Project completion is scheduled for March of next year. U-Mass Five College FCU has $109 million in assets and serves 20,084 members. TRW Systems FCU, Hawthorne, Calif., has announced the grand opening of its new National Headquarters and Main Member Service Center located on Aviation Boulevard. TRW Systems FCU has $375 million in assets and serves 53,835 members. Telco Community Credit Union, Tacoma, Wash., has announced construction is underway for a sixth branch in the Westgate section. The 3,600 square foot building is scheduled for completion in October 2000. TCCU has $129.2 million in assets and serves 25,902 members. First Northern Credit Union, Chicago, Ill., has celebrated the grand opening of its new 5300 square foot branch office in Rockford. Designed by DEI, Inc. of Cincinnati, Ohio, the modern office offers a pod where members and financial service advisors can sit alongside each other, a "Moola Moose" play kingdom for small children and a "Compass Club" area complete with computer and video games for older teens. First Northern CU has $164 million in assets and serves 26,743 members. Columbia Credit Union, Vancouver, Wash., has announced the relocation of its Orchards branch. The new location will be in the Albertson's Home Base Shopping Center at the corner of SR500 and 4th Plain Blvd. The branch is scheduled to open August 2000. CCU has $356 million in assets and serves 49,892 members....

Members 1st FCU, Mechanicsburg, Pa., has recently celebrated its 50th anniversary. At the dinner-dance gala the credit union's time anniversary capsule was presented. Members 1st also held a member appreciation day which featured fun, games, refreshments and special gifts including anniversary T-shirts and photo buttons. Members 1st has $539 million in assets and serves 77,000 members. Permaculture Credit Union, Santa Fe, New Mexico has received its charter from the New Mexico State Financial Institutions Division. After three years working out the details, PCU is scheduled to open its doors by July 2000. The branch office will be located on the second floor of the State Employee's Credit Union. Upon opening its doors, Permaculture Credit Union will offer members savings accounts, certificates of deposit, vehicle loans and signature loans. Initial assets are expected to total between $1.5 million to $2.5 million....

DePaul Federal Credit Union and Maryview Hospital Employees Federal Credit Union, Norfolk, Va., have announced a merger effective July 1, 2000. The new credit union will be named Summit FCU. Milly Diaz will be the CEO of Summit FCU and Cindy Raney will be the assistant manager of Summit FCU's Maryview branch. The $2.14 million MHEFCU serves 1,253 members. DFCU has $7.23 million in assets and serves 1,603 members. Duncan Meter Employees Federal Credit Union, West Lafayette, Ind., has elected to merge with Purdue Employees Federal Credit Union. The merger has been approved by the National Credit Union Administration. At the time of the merger DMEFCU had $530,000 in assets and approximately 700 members. PEFCU President William Connors said he looks forward to serving the new members and that PEFCU is working to ensure a smooth transition. PEFCU has $265.6 million in assets and serves over 56,000 members....