Loading...
HomeMy WebLinkAboutClinton News-Record, 1977-10-27, Page 210 r Clinton, Ontario • Thursday, October 27, 1977 Marks 25th anniversary :From 25 cents to $I3 million: Credit Union Second Secti on 112th Year -No. 43 4 .41 91 r When the 24 people assembled in the living room 25 years ago had put in all their quarters, they had a grand total of $24 in the pot. Not much of a beginning for a credit union, but a beginning it was. The bankers just smiled cynically, people around town shook their heads in disbelief, and- even the 24 had their doubts at times that it would ever succeed. But they threw. their whole weight behind the project', and it started to grow, very slowly at first but gradually picking up more members and money like a' run -away locomotive heading downhill on a mountainside. That was 1952, and now 25 years later with assets of over $13,000,000 and membership of 6,450, the bankers aren't laughing anymore, and no one has to convince anyone that the Clinton Community Credit Union is anything but a success. The Credit Union celebrated their 25th Anniversary last Saturday night in Clinton, marking not only the Silver Anniversary of the locally owned , and run finapcial institution., but also announced that the last fiscal year was another very suc- cessful one for the Credit Union. Many or those original 24 members who put in the first quarters were at the banquet and dance last Saturday night at the Legion when the thriving Credit Union marked 25 years in the banking business. It has been the deter- mination and the dedication of many over the years that made the happy occasion that was last Saturday night. Dozens of volunteers have given their time over the years, and it has been men like the late W.V. Roy, who put in hundreds of hours and took no pay that got the Clinton Community Credit Union on its feet. The Credit Union set out to prove the motto, people helping people, and over the last quarter century, have loaned out $38 million. This year, for the first time, the Credit Union is doing something new. As well as paying a healthy dividend of 93/ percent, they are also giving all borrowers of money in the last fiscal year, which Many of the living charter members who helped the Credit Union get underway 25 years ago returned last Saturday night to celebrate the 25th anniversary. Front row left to right are Red ,Caron, Elizabeth Medd, Florence Evans of London, Skip Winter, Muriel Trott, and Lawrence a )enomme. Back 'row are Ray Finch, Mac LeBeau of Brucefield, Alvin Sharp, Charles Shane of Durham, Arnold Dale, and Stan Ball of RR 1, Auburn. (News -Record photo) Democratic principles guideworkings A credit union is owned and operated by and for its members. Members elect representatives from themselves to a board of directors, credit committee 'and supervisory committee to 411 control the operations of the credit union for them. These elected members may hire staff to perform the day-to- day duties and assist in long range planning, etc. Credit union membership is equal to credit union ownership. A vital link in this equation is the annual meeting. All credit union members are invited to at- tend and vote at this meeting. Each member has one vote, regardless of the number of shares held: each member, regardless of wealth, has an equal voice. The meeting agenda reports from the committees, manager and auditor on the previous year's operations, a vote on distribution of net earnings (dividends, loan interest rebates etc.), elections to fill vacancies and a, vote on any proposed by-law changes. There is always a question period before adjournment. Any member (over 18 years of age) may be nominated and elected to any post. Credit union general by- laws are determined by the membership. These by-laws are the rules by which an individual credit union governs itself subject to the credit unions and *Caisses Populaires Act which governs annual includes elected all credit unions in Ontario. The Act is administered by the provincial ministry of consumer and commercial relations. All elected representatives serve as unpaid volunteers and are directly responsible to the membership. Credit unions also have. rules about conflict of interest which restrict the goods and services which an elected officer may sell or provide to the credit union as a whole. The board of directors is in overall authority, control and responsibility. The board members elect, from among themselves, a president, vice- president and secretary at their first meeting following the annual meeting. At their regular meetings, George Michie, left London Chapter president, presented Clinton Credit Union president Ernie Williams with a plaque commemoratlnt the Credit Union's Silver anniversary, celebrated last Saturday night. (News -Record photo) they review and authorize new member's applications, the previous period's financial reports, reports from the credit and super- visory committees, the manager's report and so on. The board authorizes major expenditures and determines the general policies (subject to the by-laws) to guide management in operating the credit union. In summary, they do the feeling, thinking and deciding on behalf of the Members., The credit committee reviews loanapplications and approves or disapproves each loan. In larger credit unions, certain staff, designated by the committee and board of directors, may act --as loan officers who may on their own authority give immediate approval to small loans for the committee. Credit committees in these credit unions then spend more of - their time on larger loan applications. ended on September 30, a five percent rebate on interest paid. As well, they have lowered the, interest rate on first mortgages to 111/2 percent, and down to 11 percent on renewals. "We had another good year," Credit Union President Ernie Williams told the banquet. During the past year, the Credit Union also opened a branch in Exeter that has already attracted 600 members, and separate records were kept for the branch. It has gene over so well, that the new Exeter branch has been showing a profit for the last six months. "Rather than let the Credit Union name fall by the wayside in Exeter, we decided to open a branch," Mr. Williams told the nearly 200 at the gathering. The Clinton Credit Union has now climbed to 43 largest in the province, according to manager Fred Gibson, and in the last five years has nearly tripled its assets from $5 million. That's a healthy return for 25 cents. Dr. George Goth London didn't mince any words when he told the Credit Union's 25th anniversary banquet what was wrong°with the country. Too many people are getting too much for too little work, was just one point he touched on in his half hour speech. (News -Record photo) Credit union has range of services Someone once asked a certain credit union president, "What can the credit union do for me?" An hour later, the president had not yet finished the answer and the questioner' was still listening. Can they really do that much? Yes, they can! Credit unions pride themselves not only on the services they offer and benefits of membership but also on the way they offer them. Members are not just another customer but an owner commanding respect as well as friendliness. Members are people, not accounts or clients. No one will ever be able to .compile a complete list of all services offered by all credit unions but there are some that are available to everybody. The first artd most basic service offered to credit union members is the Share ac- count. When a person joins a credit union, they open and deposit at least $5 to a Share account. That makes them a member and gives them equity in the credit union. This part. ownership gives them a vote and voice at the credit union's annual meeting. At this meeting, the members and -or their elected representatives declare dividends on Shares out of the profits of the credit union. Dividend rates vary from credit union to credit union as, of course, do profits but current local rates have ranged from 6 to 11 percent. Credit union shares are also life insured. The credit union pays the premiums so that upon death of a member, their designated beneficiary will receive a Lheque for an amount equal to the Share account balance. (The Shares themselves remain intact as part of the deceased member's estate.) There is usually a • Since committee members know the me mber making the loan application, they can mote easily accept the person's character and promise to repay as security rather than collateral. These committee members work" very hard and meet anywhere from two. or three times a week to once a month depending on the member's loan demand. The supervisory committee performs internal audit functions by making surprise cash counts, checking ac- -counting records and, most important, loan's documentation. These members act as a safeguard on the rest of the member's investments in the credit union, maximum of $2,000 insurance per member per credit union (for example, if you belong to two credit unions, you could have up to $4,000 insurance, free) and some liberal age and health requirements. These are stated on a cer- tificate of insurance which you, receive at the' time you open the Share account. Every credit union grants personal loans to its members for worthwhile, productive purposes. Credit union personal loans feature open contracts: a member can repay at any time without penalty or extra interest charges. These loans are also life insured for free: upon the accidental disability or death of a member, the' loan is paid off automatically from the proceeds of the insurance. Credit union members say "The debt shall die with the debtor." Another common feature of credit union services is payroll deduction: a plan arranged between members, their employer and the credit union. The member authorizes the employer to deduct a certain amount, chosen by the member, from wages or salary each pay period to be sent to the credit union for direct "deposit to savings, as a loan payment or split between the two. In larger credit unions, a member can even deposit to chequing accounts by payroll deduction. Payroll deduction allows credit union members to "pay themselves first" and build up savings or pay off a loan painlessly. - Many credit unions, especially the smaller ones or those with a closed bond of membership (only employees of a certain company or agency may join) have chosen to.specialize in Shares and loans, often conducting most of their transactions by payroll deduction. These credit unions usually have the best dividend and loan in- terest rates. Larger credit unions or those with,a community bond of association (anyone living or,working in the community card join) usually have full time office hours and staff. These credit unions offer a full range of financial ser- vices while keeping control in the hands of memb'ers. Some Ontario credit unions followed the lead of those in British Columbia and started a daily interest savings ac- count to members as soon as the necesary computer data processing systems were developed. The call it plan 24: interest rs calculated every 24 hours on the daily ending balance. This allows a member to deposit or with- draw on any day of the month and still get full interest for every dollar for every day it was on deposit. There are no `minimum monthly balances' to worry about. Few other deposit -taking institutions offer daily interest accounts and very few others have plans to do so. Chequing accounts, both personal and current, Registered Retirement Savings Plans and Registered Horne Ownership Savings Plans, term deposits, Canada Student Loans, .mortgages and business loans are also available to credit' -the union members in Clinton area. In addition, credit unions. with large enough vaults and safekeeping facilities offer traveller's cheques, money orders and safe deposit boxes to their members. On the human side, credit unions offer family business budget counselling if requested or necessary. People helping people A credit union is people: people who help themselves by helping others. A credit union is ,people who pool their -savings in the credit union in order to make low-cost loans to each other. Credit union profits are returned to its members. A credit union is people who control their own financial service co-operative: credit union members are owners because they elect representatives from among themselves who determine the policies and control the management and operation of the credit union. A credit union is people who know each other. Credit union members always share some common bond.of association: they work at the same place or worship together, have the same ethnic background or live in the same community. Surrounded by co-workers, friends, relatives and neigh- bors, a credit union member can feel at home and part of the credit union family. A credit union is people who know their savings are secure: no one has ever lost a nickel of principal in credit unions in Ontario. Individual credit unions are backed by the province's other credit unions and with deposit in-' suranc&. A credit union is people who share a long history of co- operation, invention and imagination, pioneering and plain hard work. Starting over 125 years ago credit unions have always been organized by groups of or- dinary people to . help themselves financially when larger institutions would not (continued on page,6A) Members of the board of directors and the credit comthittee posed with guest speaker Dr. George Goth last Saturday night at the Credit Union's 25th anniversary banquet. Left to right are Gordon Scribbins, Tom Eadie, Milford Durst: John l.avis, Norman Counter, i r. Got , rn e 1 ams, Charles Nelson, manager Fred Gibson, Jim Hunter, Herb I)uizer, Richard Lobb, and Red Garon. (News -Record photo)