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Liquidity & Lending Services
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As a primary source of liquidity for credit unions, Rocky Mountain Corporate Credit Union provides access to low cost liquidity, credit, and cash reserve services. In order to be eligible for these financial products a credit union must have a line of credit in place at RMCCU. Our competitively priced lending products are designed to promote the well-being of credit unions as well as distinguish them from their competitors.
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Unsecured Settlement Loans (015)
An Unsecured Settlement Loan consists of overnight liquidity to cover unforeseen charges from item processing and auto settlement files. Through a settlement loan, RMCCU automatically creates a loan for credit unions, providing security to their members that settlements will be paid timely and without incident. The loan occurs after all daily settlement transactions have been posted.
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Unsecured Advance Loans (020)
This loan is created at the "demand" of the member. Drawn against an existing unsecured line of credit and bearing a lower interest rate than the Unsecured Settlement Loan, this provides a cost effective way for credit unions to lower liquidity costs if they manage their funds.
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Secured Variable Advance Loans (025)
Similar to an Unsecured Advance Loan, this loan is also drawn at the "demand" of the member. The Secured Variable Advance Loan provides the lowest cost of funds for member credit unions that have signed a Secured Line of Credit Agreement with Rocky Mountain Corporate. This loan is also available for credit unions holding certificates of deposits to request funds up to the amount of their total certificates.
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Certificate / Share Secured Term Loans (030)
A Share Secured Loan offers low cost liquidity for credit unions with deposits having contractual maturities, but who have a need for funds prior to the maturity date. This loan, set up for a specific time period with a fixed rate, allows a credit union to borrow against the certificate without being penalized for early withdrawal.
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Secured Settlement Loans (035)
Similar to the Unsecured Settlement Loan, this loan automatically creates a safeguard to cover unforseen charges from item processing and auto settlement files. Utilized by members having established a secured line of credit with RMCCU, this loan bears a lower cost of interest than the Unsecured Settlement Loan. Occurring after all daily settlement activity has been posted, this loan assures credit unions that their settlement transactions will be paid timely without added inconvenience.
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Reverse Repurchase Loans (050)
This loan means that a security is sold with the simultaneous agreement to repurchase the same security on a certain date in the future at a predetermined price. Ownership of a security involved in a reverse repurchase transaction does not change. This assures peace of mind to the credit union who is still entitled to all principal and interest payments on payment dates. Terms and rates are determined at the time the repurchase agreement is entered.
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Central Liquidity Facility
Rocky Mountain Corporate Credit Union is an agent of the Central Liquidity Facility (CLF) founded in 1979. The CLF provides a reliable source of credit to credit unions when funds are not available from traditional sources. Rocky Mountain Corporate Credit Union members with an existing secured line of credit are automatically eligible for CLF loans. Three forms of liquidity are available to credit unions including short-term adjustment credits (30-90 days), seasonal credit (90-270 days), and protracted adjustment credits (1-4 years) for unusual or emergency circumstances.
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