ONTARIO, Calif. - Two months ago, the California Credit Union League argued that a 1999 9th Circuit U.S. Court of Appeals ruling that credit union employees are exempt from paying hotel occupancy tax while on business was a routine application of the Federal Credit Union Act, raised no constitutional issues, conflicted with no other circuit court rulings, and did not deserve review by the U.S. Supreme Court. Now the U.S. Supreme Court, by refusing to review the motion to appeal filed by the city of Anaheim, Calif. of the lower court's decision and upholding the court's ruling in favor of the league, has agreed, and in so doing, has ended the six-year old legal clash between the CCUL and Anaheim. The six-year old case began in 1994 when the CCUL sued the city of Anaheim because it charged federal credit union employees, officers and volunteers its 13% occupancy tax at the Disneyland Hotel during the league's 1993 annual meeting. The league won summary judgment in the case in U.S. District Court, and that decision was upheld in 1996 when Anaheim appealed the district court's decision to the 9th Circuit Court of Appeals. Anaheim then appealed the 9th Circuit Court's ruling to the U.S. Supreme Court and the high court overturned the 9th Circuit in 1997, ruling that the U.S. government needed to be a co-plaintiff in the case. The Department of Justice then joined the CCUL as a co-plaintiff in the lawsuit, and the 9th Circuit reaffirmed its original ruling last September. Beyond the implications of the U.S. Supreme Court's decision on federal credit unions, CCUL Vice President and General Counsel Joseph McDonald said the court's decision to deny certiorari also has implications for other federal instrumentalities because it means they cannot be held liable in litigation for punitive damages as instrumentalities of the federal government....

Trying to predict the future may be a fruitless effort, but speakers at the Education Credit Union Council annual conference told CUs to think ahead............................Page 16...

DALLAS - Southwest Business Corporation is looking to bring some "unity" to the lending and insuring process. SWBC's Unity software application is helping credit unions give their member service reps and call center reps access to all of a CU's loan and insurance products from one desktop application. One of the logistical problems a call center representative or loan officer faces when taking applications is negotiating the various screens to provide members with all of their loan and insurance options. "The biggest obstacle is the amount of time in front of the members. With loan applications done over the phone through a call center or central loan department, the rep usually only gets about six minutes of a member's time," said David Wilcox, vice president of residual and mechanical breakdown insurance products division for SWBC. "There's no way you can go to all the different software systems and present different quotes to the member in that time," said Wilcox. With Unity, instead of toggling from application to application, reps can quote conventional and residual loans from the single application, finding the best deal for members. "Time is of the essence, especially in call centers," said Wilcox. It's not just loan information call center representatives have to present to members. There are a number of insurance products-including credit life, credit disability, GAP, and mechanical breakdown insurance-that, if they have the time, reps should be offering members. This goes to the concept of cross-selling products, something Wilcox said credit unions want to get more focused on. "The call we were hearing from credit unions is that Y2K was a long experience in getting compliant, but now they want to step up and create a retail environment, a sales culture," said Wilcox. Wilcox said another benefit to CUs is Unity's reporting capabilities. The system builds management reports on the number of loans closed and insurance products sold that month and can transmit them electronically to the appropriate parties (carriers, agents) for reporting purposes. "Besides just building loan reports, managers can see what penetration levels are for each officer and evaluate how well they are presenting their products," said Wilcox. Wilcox noted that Unity isn't just a software application, it's a concept. "The reason we say that is we provide marketing, training, and advice from a management standpoint, it's about cross-selling as a concept." Approximately 140 credit unions are currently using Unity. -pgentile@cutimes.com...

MADISON, Wis. - If insurance coverage is any indication, credit unions are not as concerned about flood damage as they are about damage caused by other natural hazards such as fire or wind. Despite the fact that the nation's foremost hurricane expert has predicted several years of severe hurricane activity in the U.S. and considering the flooding problems caused by Hurricane Floyd and Hurricane Dennis last year, credit unions are just not buying flood insurance, said Lowell Carter, manager of CUMIS' Property and Casualty Brokerage. Carter could not give specific numbers, but he said that CUMIS had to turn down a number of claims last year by CUs that suffered flood damage from the hurricanes that battered the East Coast. He said some credit unions were surprised to find that flooding is not covered in a credit union's property and casualty policy. Fire is wrapped into P&C coverage, similar to the way it's wrapped into homeowner's insurance, but flooding is not. "There's been a lot of interest in flood insurance every since Floyd went up the East Coast, but few credit unions have actually purchased it. There's really something of a human nature bias against buying it I guess," said Carter. Carter said CUMIS only has about 150 CUs carrying flood insurance. CUMIS only acts as the broker to CUs for flood insurance. Flood insurance is unique in that the only true underwriter is the federal government, or more specifically the National Flood Insurance Program. Very large insurance carriers will offer large clients some type of flood insurance as a package with other coverage, but almost all flood policies are underwritten by NFIP. "The private insurance industry feels they can't do it (underwrite flood insurance) because of something called adverse selection. That is the only people who are going to buy it are those who have a pretty good chance of getting flooded," said Carter. Carter said insurance carriers are unwilling to wrap flood insurance into P&C or homeowner's policies because they would be forcing those who feel they have no danger of a flood to protect against it anyway. But if it was included, the costs would be much less. Carter said probably the best explanation as to why most CUs don't carry flood insurance is that few have ever been hit by a flood and most CUs aren't located in high-risk flood zones. However, when a hurricane the size of Floyd hits, all areas are at risk. Larry Johnson, President/CEO of the North Carolina Credit Union Network knows that better than anyone. Some North Carolina credit unions that were not in high-risk flood zones were hammered by Floyd and Dennis, sustaining hundreds of thousands of dollars in damage. "We had credit unions flood that were in 500-year flood zones. That was unbelievable," said Johnson. "The likelihood of that happening again is probably remote. I don't know if there's been any real push by our credit unions to look into flood insurance." Johnson said the North Carolina CU Network raised about $160,000 to help those credit unions, CU employees and CU members that suffered losses due to flooding. NFIP paid $250 million in claims due to Floyd last year (see chart). While Johnson said the chances of what happened in North Carolina happening again are probably slim, hurricane experts predict a very active next couple of years. And there are other reasons flooding may increase, said Carter. "Every time someone paves a parking lot, puts up a new building, builds an asphalt roof, or builds a new street, that has changed the water run-off situation. Where maybe you weren't subject to flooding last year, you might be this year if you're in a rapidly developing zone," said Carter. Basically the more concrete and pavement that is put down, the less area water has to soak into the ground, said Carter. "Losses from floods are on the increase. Due to increased urbanization, water has fewer places to soak into the ground. There's also predictions from hurricane experts of several years of increased activity." Credit unions are not alone in their lack of flood insurance. There are only 4,200,766 flood policies in force, and of that number the majority (2,864,542) are for residential properties, meaning most businesses aren't carrying flood insurance either. There are only 187,658 non-residential flood policies in force. Not surprisingly Florida has the most flood policies in place with 1,715,526. Then comes Texas with 338,099; California with 371,476; New Jersey with 167,691; and Louisiana with 351,608. Carter said CUMIS field staff can assist credit unions in finding out the risk of flood in their area and to estimate the cost of flood insurance. The cost varies based on location, size and age of building, amount of deductible, and other factors. NFIP prices polices based on the type of zone a structure is located in. An A zone is the highest risk zone, meaning there is a 1% chance every year that a flood will occur. "Most people would never think about going without fire insurance, but if you're in an A zone your chances of suffering a flood loss over a 30-year period are 26 times greater than suffering a fire loss," said Carter. There is one caveat to credit unions being covered by P&C for flood damage. Most policies cover damage to ATMs, data processing equipment and what's known as "valuable information." Aside from that, the building and its contents are not covered. The maximum flood insurance a credit union can have is $500,000 for the building and $500,000 for its contents. -pgentile@cutimes.com...

ARLINGTON, Va. - The NCUA at its February regular board meeting approved for comment a proposed new privacy rule that includes language that defers to state-chartered credit unions and state regulators by giving state-chartered credit unions the advantage of complying with their state law. The proposed rule further specifically provides that NCUA consult with state regulators before making a privacy determination applicable to SCUs. NASCUS President Doug Duerr said NCUA's proposed privacy regulations "give rise to the question of who will be examining the federal credit unions within a state if the state's rule is more stringent than the federal rule. That's an interesting twist."...

ONTARIO, Calif. and PHOENIX, Ariz. - Effective this month, members of the California, Nevada and Arizona Credit Union Leagues will be able to take advantage of selected educational programs offered by the neighboring trade associations. For example, credit union leaders in the three states will be able to attend the Big Valley Educational Conference in Monterey, Calif.; the CEO Networking Conference in Lake Tahoe; and the Arizona Summit. They'll also be able to participate in credit union-contracted training programs offered by the leagues, on a case-by-case basis. David Chatfield, president/CEO of the California and Nevada leagues, said as a result of the alliance, officials and staff of credit unions in the three states will have a broader array of quality educational programs available to them, and the statewide associations will be able to maximize their educational resources. -...

Coverage and highlights of three days of this year's conference events and speeches..Page 4...

CHICAGO - James W. Conklin, known during his lifetime for his devotion to the cooperative principle and his involvement with credit unions, died Feb. 12 from complications from diabetes and a stroke. He was 77 years old. Conklin worked for the Illinois Credit Union League for 15 years, interrupted by a two-year stint as director of information at the Cooperative League of the U.S.A. and nine years as treasurer/manager of the now Northwest Community CU. While there, he was named Manager of the Year by CUES and he was recently nominated to the Credit Union Hall of Fame. Conklin was also an avid business writer. Among his published works was a newsletter on credit union issues and a history of Illinois credit unions which is the property of the Illinois Credit Union System. He was also a correspondent for Credit Union Times in the early `90s. Jim is survived by his wife, his children and grandchildren....

AUSTIN, Texas - CUNA & Affiliates President/CEO Dan Mica is the newest member of the FundsXpress Inc. Board of Directors....

SPRINGFIELD, Va.-Michigan-based Service Centers Corporation, which now serves 240 credit unions with its shared branch and ATM network, has just opened its 24th shared branch facility, its fourth in the Washington area. NCUA Board Member Yolanda Townsend Wheat, who took part in the ribbon cutting ceremony for the new branch, praised the SCC concept as a prime example of CU philosophy in action. "I am a strong proponent of CUSOs," said Wheat. "CUSOs that offer shared branching in particular allow credit unions to have a presence where they otherwise couldn't. Superlative member service is what distinguishes credit unions from other financial services providers. "Shared branches are another way for credit unions to better serve their members, as well as an excellent way for credit unions to raise their profile in the community," Wheat said. SCC opened its doors 25 years ago in Riverview, Mich., with just five founding members. At the beginning of its silver anniversary year, SCC has teamed up with shared branching partners in California and Georgia, reaching a longtime goal to form a regional shared branch network. SCC projects that its staff will handle more than 10 million transactions during this year....

WASHINGTON-The American Association of Credit Union Leaders (AACUL) has announced the creation of a new leadership award named in honor of the efforts of Eugene H. Farley, who retired in December after 40 years of service to the Virginia Credit Union League. The Eugene H. Farley League Leadership Award will be presented yearly, with the first award to be presented at the 2001 CUNA Governmental Affairs Conference, said an AACUL spokesman. "Gene is an outstanding leader and human being," said Susan Newton, AACUL executive director. "The future recipients of this award can be proud to have been recognized by their peers as demonstrating the qualities that Gene consistently demonstrated." Judges will evaluate nominees for qualifications including: visionary leadership at the state level; focus on cooperation with the CU system; display of personal values of commitment to purpose, service to others and integrity; and substantial participation as a leader (and "co-operator") at the national level. The award has been endowed by a contribution from Richard M. "Doc" Heins, a former CEO of CUNA Mutual. Farley, who joined the VCUL in 1959 as a field representative, was CEO from 1967 to 1999. In addition, Farley also became president/CEO of the DC Credit Union League in 1998....

NEW YORK- Insurance companies continue to get into the banking business-and now so are insurance trade associations. The Office of Thrift Supervision has granted a trade association representing mutual insurance companies permission to open a open a new thrift. The OTS approved a thrift charter sought by the National Association of Mutual Insurance Companies (NAMIC). The thrift, which will go by the name of Assurance Partners Bank, was created with the backing of a consortium of 262 insurance companies in 35 states and two Canadian provinces. Those firms belong to NAMIC, which includes about 1,200 property and casualty insurance companies in more than 40 states, Canada, and Europe. Scheduled to open this June, Assurance Partners plans on offering home equity, automobile, personal, consumer loans, residential first-mortgage loans, and small-business loans. The bank will be open to the general public, but will not offer checking or savings accounts or insurance products....

TUCSON, Ariz.-Ken Robinson, former president at NAFCU, spoke at a Minnesota Life Insurance Company sales rally recently about the need to keep an eye on regulations being drafted after passage of the Financial Services Modernization Act of 1999. These should be watched for any effect they might have on NAFCU's NSC network of third-party suppliers, he advised, according to the Minnesota Life release. "We have a lot invested in our long-term relationships with our suppliers, and we want to keep those relationships intact," Robinson reportedly told the group. Suppliers in the NSC network offer products and services to NAFCU member credit unions. Minnesota Life, for instance, provides CUs with an ability to market life and disability insurance to their members. Robinson noted that NAFCU is lending its voice during the rule-making process, but suppliers should "pay attention to news coming out of Washington, and stay in touch with those who are in a position to have an impact on the process." Robinson also talked to the group about prompt corrective action issues and touched on developments in the presidential and congressional campaigns, according to a Minnesota Life spokeswoman....

MADISON, Wis. - CUNA Mutual Life Insurance Company was recently named as a 1999 Dalbar Annuity Service Award winner. CUNA Mutual was recognized for its commitment to consistently provide above average service to its MEMBERS VariableAnnuity customers. "Winning the Dalbar Award shows that we are committed to providing excellent service," says Barb O'Rourke Variable Processing Manager. "It means we consistently exhibit above average service in core areas of servicing our members. This includes written and phone services." Dalbar is an independent research company that evaluates service quality within the financial industry. To be named a Dalbar Award winner, CUNA Mutual was measured against 48 other Variable Annuity companies. Dalbar's service evaluations analyzed telephone and written communications. The organization judged CUNA Mutual's customer service representatives against specific criteria including attitude, accommodation, knowledge, and security checks. Other 1999 Dalbar Annuity Services Award winners include: Ameritas Variable Life, The Hartford Life, ManuLife North America, Merrill Lynch, Pacific Life, and Prudential Life....

ATLANTA- HomeCom Communications, a provider of Internet solutions for the financial services industry, announced the latest release of InsureRate, version 2.0. InsureRate brings insurance products to consumers through the Web site of participating clients. InsureRate is an online insurance marketplace where financials, broker/dealers and others can bring Internet insurance products and services to their customers. "Our goal with this new release is to make InsureRate completely consumer friendly. Version 2.0 gives customers the option of opening an account with a user ID and password, and any information that is entered into InsureRate will be retained. There is no redundant data entry," said Doug Donnenfield, president of InsureRate. As an example, Donnenfield noted that a customer could receive a quote during one session and then return during another session, access the same quote and even initiate another request for the spouse. For more information visit www.homecom.com....

CHICAGO - The Illinois Supreme Court has denied State Farm Mutual Automobile Insurance Co.'s motion for an expedited appeal of a $1.2 billion class action judgment against the company. In 1999 a Marion, Illinois judge and jury found that State Farm violated consumer-fraud laws when it failed to disclose to policyholders the quality of aftermarket crash parts it was authorizing in policyholders' repairs. The parts did not return policyholder vehicles to pre-accident condition, which is guaranteed by the insurance policy. State Farm filed the motion with the state's Supreme Court in January 2000. Typically the appellant pleads its case to an appeals court before a higher court will hear the case. The motion was denied, as many expected. Earlier in February, Illinois' high court rejected several "friend of the court" briefs filed by the National Association of Independent Insurers and the National Association of Insurance Commissioners on State Farm's behalf. State Farm will submit its appeal to Illinois' 5th District Court of Appeals....

BALTIMORE- The Maryland Department of Insurance (DOI) seized control of Bankers Title Insurance Co. because it said more than $1 million could not be accounted for. The money is believed to be missing from escrow and insurance premium funds. The company's license and business operation have been suspended, as well as the company's two agents. The takeover is expected to cause some delays in the release of funds, and could affect pending real estate settlements. -pgentile@cutimes.com...

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The financial services world is consolidating. The Internet is homogenizing the marketplace,driving down the cost of both loan and savings rates. Members can shop nationally, online, making the local marketplace moot. These trends are helping competition burgeon and are contributing to a decline in credit union profitability. A sales and service culture takes on new importance as part of a larger plan to combat these challenging trends. Profitability is an urgent issue. The chart below shows an analysis of credit union net income in basis points less other income. This simple look at the profitability of our lending business clearly shows deteriorating profitability in lending. A more in depth analysis shows that only the smallest and the largest credit unions make money lending. The rest began to lose money on lending in mid-1999. Clearly, credit unions are facing a profitability crisis. What can credit unions do? Get on-line today, and continually enhance the Internet-based delivery of your products and services. Maximize non-interest income as you implement solutions to return lending to profitability. Fees are not a dirty word if they are well stated and fair to the member. Fees from insurance and investment product sales are appropriate for the credit union and provide valuable products needed by your members. Reassess the risk profile of your loan portfolio. Is it weighted too much toward lower risk loan types for fear of bankruptcies? Asset liability management software can help you make a rational analysis of your portfolio. Did you abandon the automobile market last year because the captives took all the business? It's time to look again at the auto market. Examine all of your processes to eliminate unnecessary expense. Market your products and services like never before to attract your member's business. Look for ways to reward employees that engage members in discussions about their financial services needs. Every member contact is a critical and precious opportunity to talk about the great things the credit union can do for the member's financial well-being. This is a sales and service culture in action. Sales Culture and Credit Union Viability Passage of the Gramm-Leach-Bliley act has guaranteed that the trend toward one-stop shopping for financial services, including insurance, investing and retirement planning, will continue. Credit unions are in an ideal position to take advantage of this trend because of the strong relationships they have with their members: people trust their credit union more than they do a bank that, like some sort of corporate X-Files shape-shifter, is forever being merged, bought out, renamed and re-branded. A strong sales and service culture will help you enhance your non-interest income and increase the likelihood that your member will turn to you for more of their financial needs. New research from the CUNA Mutual Lending Lab shows that members want financial advice and products from their credit union. CUNA Mutual's Lending Lab recently conducted research on member needs and sales culture. The research is baseis based on in-depth interviews with frontline staff and management at eight credit unions, and a survey of 406 randomly selected credit unions. A few of the highlights: Credit unions say sales and service is key to their future success, and they expressed a need for improvement. Its clear: ninety-two percent of credit unions surveyed say cross-selling products and services is very important to the success of their credit union and 91% say selling needs to be part of every employee's job. Forty percent say their credit union has a very aggressive sales culture, compared to 28% in 1998. Heightened level of importance. Credit unions agree: their sales and service programs are developing, but their opinions differ as to their stage of development. Generally, credit union employees are familiar with the concept, and credit unions are working to integrate it into their culture. They're experimenting with the different components of sales and service, and have developed tactics to support the implementation as an ongoing effort. In general, credit unions are tailoring their programs to fit employee and market needs. Sales and service is market driven, and its about relationship building. As the market becomes more dynamic and competition more intense, a sales and service culture becomes increasingly important. Market needs can only be addressed through a sales and service culture, and those needs in turn lead to the development of the organization. Front line staff say its much easier to sell when there's a relationship with the member, and as one learns about the member, cross-selling products and services happens more naturally. Basing a cross-sell on the relationship is a way to distinguish the credit union from the banking industry; the cross-sell is based on an understanding of member needs rather than sales goals. Understanding member needs is the key to successful sales and service. Insurance is an excellent candidate for this discussion since it can increase non-interest income at the same time that it helps fill member needs. According to credit unions, members don't assess their own insurance needs, and those needs vary greatly. As a result, members are at risk. Small percentages of credit unions say members routinely assess their needs for life insurance (22%) and disability insurance (20%). Eighty percent say their members needs vary greatly, and only 40% say they know what their member's insurance needs are. Focus groups with credit union members (1998, 1999) validate these findings. Members are not always sure how to assess their insurance needs. They say these needs vary by life stage, age, and the availability of other financial resources. Since needs vary for each member, credit unions should focus first on understanding members, rather than trying to promote benefits that may not match needs. The loan officer is in a good position to offer members information on insurance information and advice those credit union members want. Fifty-six percent of credit unions say their members regularly seek financial advice from their loan officer. For the advice to help the credit union and member alike, however, it must address the needs of the specific member in question. A fully-functioning sales and service program requires developing a number of components that work together to meet the programs goals and objectives. Credit unions recognize the importance of clearly communicating the focus of sales and service to their employees. Credit unions suggest that the term sales is actually inappropriate to the credit union focus. Its about education and the process, rather than the sale. The following components can help develop and maintain sales and service: communication, organizational alignment, job design, improved operational efficiencies, marketing, training, tracking, coaching, incentives, and member feedback. As time goes on and credit union goals change, these components need to be reviewed to reflect those goals. The result: a dynamic organization that's market driven. Feedback loops are in place and functioning. Management is responsible for meeting front line needs, and front line staff is ultimately responsible for meeting member needs. Feedback from the front line is critical for renewal. Research done specifically on credit insurance shows that knowing member needs, matching needs to benefits, one-on-one coaching, and providing relevant product information to the member increases credit insurance enrollment. If there's a relationship between these attitudes and behaviors and credit insurance enrollment, then there's most likely a similar relationship for the sales of other financial products and services. Members want the information, and by providing it, the member receives a product that fulfills a need. A sales and service culture has always been a critical strategy to meeting the member's needs and developing a longlasting relationship of trust. In today's environment, a credit union may not be able to survive without it....

You had to be there! In a mere 28 minutes, NCUA Chairman Norm D'Amours single handedly threw a giant bucket of cold water on an otherwise well-orchestrated and totally upbeat CUNA Governmental Affairs Conference. If his goal was to put a final exclamation point on his legacy as Chairman, in front of over 3,000 credit union devotees, he succeeded big time. Apparently his six previous GAC appearances didn't give him enough of an opportunity to show that he is completely out of touch with credit unions. He had to use appearance number seven to thumb his nose at just about everyone who has made credit unions a national success story. To the everlasting credit of the stunned audience, they showed him a degree of courtesy and respect he didn't deserve. What a perfect chance D'Amours had to salute credit unions by quoting chapter and verse from the latest, very positive, industry statistics. Or congratulate credit unions for their flawless handling of the Y2K situation. Or give a positive spin to his NCUA annual budget and strategic plan. Or praise the assemblage for the outstanding numbers that the most recent bipartisan surveys produced regarding the American public's perception of credit unions. Or praise CUNA for its many initiatives that dove-tailed with his limited but ongoing personal agenda. Such as Project Differentiation. Such as small-credit union assistance programs. Such as an ambitious committee structure which provides an open forum for healthy discussion on major issues such as the threat of CU taxation. What a great opportunity his last hurrah (and he made certain it will be just that) provided him to extend an olive branch and attempt to go out on a positive note. Or to explain his perspective on the headline-grabbing hiring scandal that has rocked the agency. Or to address the industry's real issues such as bankruptcy reform, PCA (prompt corrective action), complex credit unions, compliance issues, taxation, and the relentless banking industry attacks. To know the combative personality of Norm D'Amours is to know that he would completely blow the golden opportunity like a little, spoiled brat. Instead of acting like the invited guest he was, he came in to CUNA's house and proceeded to kick the family pooch, criticize the furnishings, the food, and every member of the family. If CUNA ever invites him back to speak at any meeting, they need to have their head examined. It is going to take CUNA, NAFCU, NASCUS, the leagues, and credit unions working hard together to undo the damage his erroneous and ill-timed remarks have done. And NAFCU officials ought to also think twice of hauling him all the way out to Hawaii for their July annual conference so that he can kick sand in the faces of their delegates as well. Hopefully, his CUNA slap-in-the-face speech will be his last ever before any credit union audience. He deserves no less! Within the first minute or two, it appeared that D'Amours was going to depart from his single, canned speech that most of us could recite by heart. The fact that he stayed attached to the lectern (something very uncharacteristic for him), left no time for audience questions or comments, read a prepared script word for word, and spoke in a subdued monotone bordering on emotional distress, should have been enough of a tip off that, "here we go again." This time, however, he was more obnoxious than all his previous appearances put together. He obviously realized that this was his last chance to tell so many credit union leaders to go to hell at one time. And he left no one out. He chastised credit unions and CU organizations for "going in the wrong direction," and for "their lack of volunteer control." He bashed the national trade groups for caring only about their own pay and not having volunteers on their boards. In doing so, he clearly showed that he doesn't understand the definition of a volunteer. D'Amours obviously doesn't realize that the entire CUNA board, for example, is made up of unpaid volunteers. No board member is paid for serving on the CUNA board. The fact that some board members may have a full-time, paid job in a credit union doesn't make them any less of a volunteer than someone who may have a full-time, paid job working for a sponsoring corporation. D'Amours continued his personal venom against league CEOs, many of whom were seated directly in front of him because they had been lauded earlier by CUNA CEO Dan Mica. What a direct kick in the pants to a group of leaders who played such a key role in the passage of H.R. 1151. After finishing his lambasting of just about everyone connected with credit unions, the self-proclaimed movement savior described the perfect credit union world. It would be made up of only small credit unions with completely protected FOMs to make certain they stayed small, run completely by volunteers, and supported by low-income paid staff. When D'Amours finished, the applause from the fire-breathing audience was polite. When NCUA Board Member Dennis Dollar was immediately thereafter introduced, he almost received a standing ovation at the mere mention of his name. What a unique way to boo the previous speaker. D'Amours was seen one last time at the conference. He participated in a session featuring a chance to talk one-on-one to each member of the board and regional directors (including those whose hands had just been slapped). Each of these individuals stood near a sign giving their name, title, etc. One regional director was observed next to the wrong sign. One wag speculated that it was simply another false duty location. Most conference participants came to talk with Dollar and Yolanda Wheat. Their lines were longer than the typical wedding reception line. As for D'Amours, he was last seen talking to one of the hotel's waiters. Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com....

"Welcome to the CUNA marathon. We're about to set a new record for starting a conference and not allowing any breaks. We'll be in the Guiness Book of Records because by the time I'm finished with my remarks there will probably be four people left in the room. But not to worry, I've got folks stationed at every doorway taking names." - Carl Pascarella, president/CEO, Visa, commenting on the back-to-back long line of speakers at CUNA's GAC general sessions. "Nothing accidental happens in politics. George W. Bush didn't go to Bob Jones University by accident. He went there to exploit the Bob Jones University association with the extreme right wing. George W. Bush started this campaign in the middle of Republican politics. When he got to South Carolina, he wanted to be very clear he's the most conservative candidate left standing at that point. The way to do that was to go to this madhouse of Bob Jones University and say nothing, not a word, not a breath about the insanity that is taught there." - Lawrence O'Donnel of the McLaughlin Group "Credit unions have always been responsible protectors of their members' financial privacy, and the level of responsibility you've demonstrated is the best insurance against even more restrictive privacy regulation." - Sen. Tim Johnson (D-S.D.) "These are some quick notes that I did from recollection this morning, fortunately, thanks to Ginko Biloba, my female physician." -...

Penfield FCU, Rochester, N.Y., has made the following promotions: E. Jerry Drake, director of information systems; and Karin Allen, director of branch operations. Service CU, Portsmouth, N.H., has elected Cliff Taylor chairman of the Board....

Air Academy FCU, Colorado Springs, Colo., has made the following appointments: Brad Barnes, CPA, internal auditor; and Mark Fuhrman, CLU, ChFC, financial advisor at the new Highlands Ranch branch. Hughes Aircraft Employees FCU, Los Angeles, has named William Partin chief operating officer of its service organization, CU Master Services Inc. IBEW Plus CU, Las Vegas, Nev., has named Thomas J. Kane chief executive officer. U-Lane-O CU, Eugene, Ore., has named Marla Casley Internet coordinator. Partners FCU, Anaheim, Calif., has named Rich Reed vice president of information technology. Sierra Central CU, Yuba City, Calif., has named John Cassidy president/CEO....

City-County FCU, Minneapolis, Minn., has made the following appointments: Jerry Deyo, vice president of marketing; Katie Kern, assistant vice president of human resources; Kim Newsom assistant vice president of electronic services. The following have been promoted to assistant vice president/ branch manager: Pat Larson; Leigh Ann Larson; Charmaine Bing; Roger Johnson; and Kathy Norberg. Purdue Employees FCU, W. Lafayette, Ind., has named Virgil Vaughn manager of commercial lending. United Airlines Empl-oyees' CU, Chicago, has made the following appointments: Frank Weidner, senior VP for member service; Tom Moore, senior VP for finance & administration; and Robert Newcomb, senior VP for operations. Dearborn FCU, Dearborn, Mich., has named Michael Kruczek manager of real estate lending and Martha Peters senior manager of marketing....

HBE Corp., St. Louis, Mo., a firm that offers its clients solutions in architectural design, construction feasibility and functional efficiency, has made the following appointments: Mike Parnon, design architect; Gene Kemp, executive vice president and CFO; and Tim Rand, vice president of information systems. Premier Systems Inc., W. Des Moines, Iowa, a data processing service bureau serving more than 200 CUs in 30 states, has named Scott Huseman vice president of sales & marketing. Richard Myles Johnson Foundation, Washington, which provides scholarships for CU participants to attend CU-oriented educational events and conferences, has elected the following to its Board: President Stan Abrams, CEO, Vista FCU; VP Frank Michael, CEO, Allied CU; and Secretary/Treasurer Debra Gannaway, CEO, Norton Community CU. In addition, elected directors include: Tim Kramer, CEO, American Electronics Assoc. CU, and Sarah Canepa Bang, CEO, Financial Service Centers Cooperative Inc. (1-year terms); and Gannaway, Judy Happ, CEO, Arrow CU, and Dave Rhamy, CEO, Silver State Schools Family CU (3-year terms). RSM McGladrey Inc., Bloomington, Minn, Minn., has named John Zasada senior manager in National Financial Institutions Consulting Group. Zasada is the lead instructor for the NCUA Regulatory Compliance School for state & NCUA examiners. Wausau Financial Systems, Mosinee, Wis., an international provider of payment processing solutions for financial and commercial businesses, has appointed John Black senior consultant in the consultative services division. - lide@cutimes.com...