Accepting Share Certificates
The share certificates available through Primary Financial’s SimpliCD program are issued by federally insured credit unions with Primary Financial acting as custodian for the investor. A federally insured credit union can be a federally chartered credit union or a state chartered credit union. Federally chartered credit unions are regulated by the National Credit Union Administration (NCUA), while a state-chartered credit union is usually regulated by the state supervisory authority where the credit union's main office is located.
Per NCUA Regulation 701.32, a federally chartered credit union may, to the extent permitted under Section 107(6) of the Act, receive payments on shares, (regular shares, share certificates, and share draft accounts) from public units and political subdivisions thereof (as those terms are defined in §745.1) and nonmember credit unions, and to the extent permitted under the Act, this section and §701.34, receive payments on shares (regular shares, share certificates, and share draft accounts) from other nonmembers.
Unless a greater amount has been approved by the Regional Director, the maximum amount of all public unit and nonmember shares shall not, at any given time, exceed 20% of the total shares of the federal credit union or $3 million, whichever is greater. Regulation 701.32, in its entirety, can be read through the following link here.
Regulations for state chartered credit unions vary by state, but many adopt the federal guidelines. Primary Financial has general guidelines available for many states, but in the end, we recommend that state chartered credit unions contact their state supervisory authority to verify the acceptance of these deposits.
Complete and sign the Certificate Regarding Credit Union's Acceptance of Deposits from Primary Financial Co LLC and email a copy to SimpliCD-Trading@epfc.com or your corporate.
Work with our trading desk to develop the terms of issuance.
Make your offerings available to a nationwide market of investors the same day.