The June 8 issue of Credit Union Times contained a very comprehensive article titled, "Pay to Play: Comparing Capitalization Requirements." The timing of this article couldn't be more appropriate as credit unions across the county are performing due diligence on potential new service providers, both inside and outside the corporate credit union system.

Unfortunately, a few errors in the body of the article relating to Corporate One's capital formula and strategy misstated our simple and easy-to-understand capital requirements. Therefore, I'd like to clarify a few of the most important points.

Corporate One's capitalization formula is 0.9% of a credit union's assets, capped at $900,000. So, for example, if a credit union has $10 million in assets, the capital requirement is $90,000. For $20 million in assets, the capital requirement is $180,000; for $30 million it's $270,000; and so on, up to $100 million in assets, at which time the cap of $900,000 would come into play. It's that simple.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.