LENEXA, Kansas - Louisiana Corporate serves more credit unionsaffected by Katrina than any other and it wants to be prepared. "Wehave close to 100 members in the affected area. I'd say we've madecontact with about 35 to 40 of them," said Louisiana Corporate CEODave Savoie, speaking from U.S. Central's headquarters in Lenexa,Kansas where the corporate is operating its back-up site. Savoie isasking credit unions from around the country to consider makingdeposits with the corporate. These deposits will help it meet theliquidity demand that is sure to arise from Louisiana CUs in theweeks ahead as members try to get their lives back in order."That's normally what happens after these situations arise. We wantto be ready for that. I need liquidity and I'm not going to waitfor the CLF (Central Liquidity Facility) to do it for me," saidSavoie. Savoie referenced the CLF because it is one logical sourcefor liquidity in this time of need. However there has been someconcern from Savoie and Corporate America CU CEO Thomas Bonds aboutthe CLF extending guaranteed loans for corporates to make to creditunions. The CLF is doing that, but on a case-by-case basis. The twosaid that's no different than how loans were handled prior to thedisaster. The CLF could also help by infusing some cash intoaffected corporates, but it's unclear what they plan to do. The twocorporate leaders did say they were encouraged by recent word fromthe CLF, but Savoie still wants his corporate to do as much as itcan on its own. Right now Louisiana corporate has plenty ofliquidity. If it called on all of its outstanding lines of creditit has about $70 million available. Savoie said since LouisianaCorporate has a national FOM, all that is required for a CU tobecome an associate member and make a deposit is $100 to stay in asettlement account. The deposit will go into a money market accountthat Savoie said is paying about the same as fed funds right now."We know credit unions have many options for depositing theirovernight money, but right now investing in Louisiana Corporatewould greatly assist us in quickly providing funds to credit unionsin need," he said. Savoie wants credit unions to know that theirdeposits will be put to good use in helping CUs help their membersin this time of need. U.S. Central has been a great host, but thecircumstances that led to three Louisiana Corporate employees andmany of their family members - and pets - coming to U.S. Centralweren't the best. Unfortunately, many only came with limitedclothing and other supplies. They are all staying at a hotel andtrying to make due. "We don't have a good estimate for how longwe'll be here. It will cost us $15,000 for food and lodging amonth, many have to buy new clothes," said Savoie. He has had toenroll his two children in Kansas City schools as have otherdisplaced Louisiana Corporate employees. He hasn't been able tomake contact with his mother or brother back in Louisiana and isunsure where they are, and he's not sure if his home is stillstanding. Three of Louisiana Corporate's employees' homes weredestroyed by the hurricane. Fortunately, it appears the corporatenetwork will take care of the displaced employees. A number areworking on setting up a fund and making donations to cover theirexpenses. And this week two other corporate CEOs - Dennis DeGroodtfrom Missouri Corporate and Larry Eisenhauer from Kansas Corporate- will come to U.S. Central to fill in for Savoie, who has totravel on reserve duty. He is a Navy reservist pursuing Chiefstatus. Another of the corporate's employees, member servicerepresentative Natalie Tardo, has a husband who is an ITprofessional for a hospital in the St. Bernard parish. He wasconsidered an essential employee and required to stay. He wasfinally able to leave after the evacuation, but not after having tocommandeer a kayak to paddle out. On the way he saw dead bodies,and other horrible sights. Savoie said fortunately he was able tomake it to the airport in Lake Charles where Louisiana Corporate'schairman was able to pick him up and help him get on his way toLenexa to meet up with his family. Meanwhile Bonds of CorporateAmerica in Alabama, said about 15 of its members were affected byKatrina, two severely. "Right now the biggest problem were havingis not with liquidity but with cash delivery." Corporate America isoffering 0% loans to affected credit unions. It also adjusted itsloan limits to loan the most it can under [email protected]

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