To Our Member Representatives

It is a pleasure to have you as our Member Representative. Hospitality Federal Credit Union is a unique organization. The majority of our members will never be able to walk through our doors and conduct their Credit Union business in person. That is why we depend so much on the Credit Union Member Representative both to promote Hospitality Federal Credit Union as a benefit to their employees and to assist them whenever possible with their Property Rep Handbook - handbook June 6, 2002understanding of Credit Union policies and procedures. We sincerely hope that this reference guide is of help to you as that representative and thank you for your continued support.

The Staff of Hospitality Federal Credit Union

The Mission of Hospitality Federal Credit Union

“Provide convenient financial services to enable our members to help each other achieve their dreams.”

Credit Union Membership – A Way To Share In The Benefit

Hospitality Federal Credit Union is many different things to our members. To the housekeeper in Iowa, being a Credit Union member is a way to save money each payday for a vacation or a special purchase. To the casino dealer in Mississippi, the Credit Union is a great source for low cost, high value, auto loans. Hospitality Federal Credit Union is structured so that each member can make our services work for them.

The Credit Union offers a full range of accounts, loans, and services at rates competitive with other financial institutions. With these resources, we can help members reach their financial goals, both large and small. Just about any way you look at it, the Credit Union is a good deal.

This booklet is a brief guide to the products and services the Credit Union offers. It’s designed to acquaint you with the basic concepts upon which the organization is built. It can also help you answer co-worker’s questions and speed up administrative responsibilities you may have regarding the Credit Union.

Reading this booklet should answer most of your questions. If you have more, just call 901/684-7200.

Just What Is Hospitality Federal Credit Union?

The Credit Union is an independent, not-for-profit financial services organization. It’s a cooperative owned by members and operated for their benefit. The Credit Union encourages thrift by offering better rates on savings and loans than most other financial institutions. It offers sound methods for members to develop and maintain individual financial strategies.

Who Can Belong To The Hospitality Federal Credit Union?

Employees of Harrah’s Entertainment, Inc., Hilton Hotels Corporation (paid from Memphis, TN who were formerly Promus Hotel Corporation employees), and Six Continents Hotels, their respective parents, subsidiaries, affiliates, and divisions and employees of franchisees of Hilton and Six Continents Hotels that have been approved for participation. Immediate family members (spouse, child, sibling, parent, grandparent, stepparents, stepchildren, stepsiblings, and adoptive relationships) of any member of Hospitality Federal Credit Union can also join the Credit Union.

Once you’re a member, you’re always a member, no matter where you’re employed.

How Does Somebody Join The Credit Union?

Just get a membership application, fill it out, and turn it in to the Credit Union. Membership applications should be available at your payroll or Human Resources department. There’s a new account processing fee of $10.00 that is deducted from your account. Making a minimum payroll deduction of $5.00 per pay period opens your savings account and qualifies you as an active member.

Members must keep a minimum balance of $25.00 in their regular share account at all times for the account to be considered active.

Is There A Waiting Period To Join?

Hospitality Federal Credit Union does not require a waiting period before employees are eligible for membership. Membership is immediately available upon employment by a participating employer. Most locations will include Credit Union information and enrollment documents in their new-hire orientation material. You may complete your Credit Union enrollment card as you do your other employment papers or you may enroll at your convenience at a later date. It’s your choice.

How Does My Money Reach The Credit Union?

Your employer withholds your deductions for depositing to your Credit Union account. Your employer sends your funds to the Credit Union by diskette or through the Automated Clearing House (ACH) System of the Federal Reserve. When the Credit Union receives the funds, it makes the account deposits as instructed by each member. Hospitality Federal Credit Union will credit your deposit to your account effective the date of receipt by the Credit Union. All payroll deductions will be credited within 24 hours of receipt by the Credit Union.

How Do I Change My Deduction Amounts…

… Or Reassign My Deductions To Specific Accounts?

If you are paid directly by Harrah’s Entertainment, Inc.,or Six Continents Hotels in Atlanta respectively, you can request changes in the amount of your deduction by writing or calling Hospitality Federal Credit Union. If you are paid by another payroll department, you should notify them to change your deduction amount. You should always notify the Credit Union of any reassignment of your deductions to specific accounts. You may increase, decrease, or change the distribution of your deductions at any time. If you elect to decrease your payroll deductions, you should always verify that any new deduction amount is sufficient to allow for any applicable loan payments and minimum Credit Union deposit amounts.

How Is The Credit Union Set Up?

Hospitality Federal Credit Union is a not-for-profit corporation regulated by the National Credit Union Administration (NCUA) and owned by its members. It is the common bond (employees of Harrah’s Entertainment, Inc., Hilton Hotels Corporation (as previously defined), Six Continents Hotels, their affiliates and licensees) and the member ownership that create this unique financial institution called a Credit Union. Hospitality Federal Credit Union is independent of Harrah’s Entertainment, Inc., Hilton Hotels Corporation, and Six Continents Hotels and is guided by its own Board of Directors who are elected by members at the annual meeting. The Board establishes the strategic and operating policies for your Credit Union. A full-time staff (currently 30 employees) is responsible for establishing and operating under sound banking procedures in order to serve its dispersed membership safely, soundly, and efficiently.

Certain specialized functions are carried out by a Board-appointed committee. The Hospitality Federal Credit Union Supervisory Committee is responsible for overseeing the operation of the Credit Union and the actions of the Board of Directors. In this capacity, the Supervisory Committee authorizes and reviews the annual independent audit and ensures that the Credit Union complies with regulations.

Are There Any Safeguards To Protect Members’ Money?

Of course. Each account is insured up to $100,000.00 by NCUA, an agency of the U.S. Government. NCUA is also the regulator of the Credit Union and examines it regularly.

The Credit Union’s Supervisory Committee authorizes and reviews an annual independent audit, and all officers and employees are bonded by the CUMIS Insurance Society, a national credit union organization.

Hospitality Federal Credit Union headquarters office and its contents are insured against any loss by theft, burglary, fire, flood or storm. Funds not used in loans to members may only be invested as provided by law.

What Are The Easiest Ways To Withdraw Money?

The easiest way is to walk into the office in Memphis, sign a withdrawal form, and present it to one of our tellers (be prepared to show proper identification). The problem with this is that most of our members are outside of Memphis. Therefore, the Credit Union has a preferred way for members located where it is inconvenient to come in. QUE! These initials stand for Quick, Unique, and Easy. QUE is a toll-free telephone service available anywhere in the United States where you have touch-tone phone service. See the QUE section, pages 14-16 for more information. Any QUE checks requested by 3:00 p.m., CST/CDT any business day are processed and mailed the same day. Any requested after 3:00 p.m. CST/CDT are processed and mailed the next business day. If you call Friday after 3:00 p.m., through Sunday night, your requests are processed on Monday (unless Monday is a holiday). All withdrawals are made from funds available in your account. The $25.00 minimum account balance is not considered available for withdrawal.

Do You Have Tips On Making A Withdrawal?

1. If you move, make sure that an address change is sent to your Postal Service AND the Credit Union. Although checks are forwarded when you have made the appropriate notification to your Postal Service, all changes should be submitted to the Credit Union to avoid the time it takes for forwarding.

2. Remember to submit the address change in advance of your withdrawal request. For account security purposes, no address change requests are accepted via telephone.

3. If you are waiting on a check, please note: the Credit Union requires that a check must have been in the mail for at least 10 business days before we will consider placing a stop payment on the item. If we have mailed the check to the address on file and that address is correct, you should receive your check within an appropriate amount of time. If the mailing address is not correct, we must wait the 10 business days to allow for forwarding time.

4. If, for some reason, you do not receive a check you are expecting and the Credit Union agrees to place a stop payment on the check, please make sure that you ONLY negotiate the replacement check and not the original check. If the date on the check you are cashing is the date of your original withdrawal, then you are cashing the wrong check. Your replacement check should arrive to you a few days after we confirm the stop payment and agree to issue a new check.

What Other Ways Can I Withdraw Money?

Members can make telephone requests by calling 901/684-7200 for a Western Union Money Order. Money orders requested by 2:00 p.m. CST/CDT any business day may be picked up the same day after 3:00 p.m. CST/CDT at any Western Union office with proper identification. Money orders are a special service and members are charged $25.00 for each request. The fee is deducted from the available account balance before the Western Union request is processed. Example: an account with a balance of $100.00 and no additional pledges will have an available balance of $75.00. Subtract the $25.00 fee and the funds available for the member to receive via Western Union total $50.00.

Members should not make their withdrawal through QUE if they want to receive the funds via Western Union.

Of course, written requests mailed to the Credit Union will be honored. These requests should include your account number, social security number, and must have proper signatures. Also, include your current mailing address. Mail any communication to the Credit Union to: 5100 Poplar Avenue, Suite 214, Memphis, Tennessee 38137.

How Do I Close My Account?

To close an account, send a written authorization to the Credit Union. In it, include your name, social security number, account number, current mailing address and proper signature. Request that your payroll department stop your deduction or direct deposit immediately. Allow three to four weeks for processing and mail time. A $25.00 closed account fee is charged on all accounts open for less than one (1) year. If you are moving, include an alternate address and approximate move date. That will
help insure proper receipt of your funds. Keeping the Credit Union informed of your current address prevents any unnecessary delays in the account closing process.

How Do I Change My Address With The Credit Union?

Again, the Credit Union requires written authorization and will not accept address change requests by telephone. You may use our Change of Information card or a Post Office change of address form. A brief letter or corrected copy of your statement with your signature will also be accepted. Failure to notify us of a change of address will result in a $5.00 bad address fee if we receive returned mail. CAUTION – if you are paid directly by Harrah’s Entertainment, Inc., Hilton Hotels Corporation in Memphis or Six Continents Hotels in Atlanta, the Personnel Authorization form (PA) used by these companies does NOT update addresses on the Credit Union data base. You must tell us, too!

How Do I Make Changes In The Name(s) On My Account?

To make changes in the way your name appears on your account, you must send a copy of the legal document that shows the change. If you are recently married or divorced, you must send a copy of the marriage certificate or divorce decree along with your account number or social security number.

If you wish to add a name to your account, simply fill out the Add Joint Owner section on the Change of Information card. Don’t forget to have the new account owner sign the back of the card.
Deleting a joint member requires the account be closed and a new account opened.

PRODUCTS AND SERVICES

Becoming a Credit Union member opens a broad spectrum of financial options to you. There are many ways to put your money to work, from a simple savings account to a home equity loan.

SAVINGS AND CHECKING

Tell Me About Shares And Dividends.

The Credit Union is owned by all its members, and the first $5.00 amount in your share savings account equals your one share of ownership. Share deposits can be made by payroll deduction, by mail, or in person (when you’re in Memphis or at a Harrah’s branch office). With payroll deduction as the most convenient method, your designated amount is withheld from each check and deposited automatically to your Credit Union account.

Some of the Credit Union’s net earnings are distributed to members’ share accounts. Dividends are declared quarterly by the Board of Directors and are credited to member’s accounts on the last day of each quarter. Your savings account must maintain and average daily balance of at least $500.00 in order to earn dividends.

What Ways Can I Structure My Credit Union Account?

Credit Union accounts are structured to allow a choice in account ownership selection. A member can choose to be the sole owner of the account. This option would restrict account access to the member only. Shares remaining in the account at the time of the member’s death would become part of the member’s estate. A member who is a sole owner can designate a beneficiary. This option allows the account proceeds to pay to the individual designated by the member at the time of the member’s death.

A joint account with right of survivorship is owned by two or more people – usually by the member, a spouse and/or your child(ren). The joint owner has full privileges of deposit and withdrawal. The account becomes the property of the joint owners in the event of the member’s death.

Tell Me About The Savings Accounts The Credit Union Offers.

First, there is a regular share or savings account. That’s the one you automatically open with your application and minimum of $5.00 deduction pay period. You must have a regular share account to open any other type of account.

Dividends paid are compounded and posted quarterly. The higher your average daily balance, the higher the dividend rate paid to your account. Your account must maintain an average daily balance of at least $500.00 in order to earn dividends.

Because the share account is intended to be a savings account rather than a checking account, you can make four withdrawals per calendar quarter before a charge is assessed. After that, there’s a $4.00 fee for each additional withdrawal. Federal regulations limit the number of pre-authorized funds transfers to 6 per month. This includes such transfers as QUE or ATM transactions.

An IRA (Individual Retirement Account) is another savings option. These accounts were established as a fairly painless way for people to save for retirement and supplement retirement income such as Social Security. Even though the Tax Reform Act of 1986 removed the up-front tax-deferred deductions of a Traditional IRA for some, you can still claim another great benefit – deferred taxes on the income your Traditional IRA generates. That means you won’t pay taxes on that income until you actually start making withdrawals from your IRA. There’s a $10.00 one-time administrative fee to establish an IRA. (Applications are available upon request). We offer Traditional, Roth and Cloverdale Education IRA accounts. In addition, the tax law changes that took effect in 2002 make IRA accounts an even more attractive option for your retirement planning.

Your IRA can be a variable-rate account which carries an dividend rate that is subject to change monthly. The dividends are compounded and paid monthly. Contributions to the variable rate account can be made through payroll deduction. The fixed-rate, 18-month IRA term share certificate requires a minimum $500.00 deposit. The rate is guaranteed for 18 months. At the end of 18 months, the term share certificate is automatically renewed at the prevailing rate unless the Credit Union is notified otherwise. Dividends are compounded daily and paid monthly.

Term share certificates are yet another type of savings account. These accounts earn a higher dividend rate than a regular share account and are offered for terms of 3-, 6-, 12-, 18-, 36- or 60-months. $1,000.00 is the minimum investment for 3- and 6-month term share certificates; $500.00 for the longer term share certificates. Generally, the longer the term of the certificate, the higher the dividend rate paid on it. Dividends are based on the average daily balance and are compounded daily and posted monthly. All term share certificates are fixed-rate accounts, based on the rate at the time of purchase. The rates offered on new or rollover term share certificate investments are published weekly on Thursdays and are based on investments of comparable maturity. Unless we are offering a special, limited time certificate, certificates will automatically renew at maturity for the same term at the current rate. If you want to change the terms, just notify us within ten days after the maturity.

The Holiday Club account is a handy way to save enough for increased holiday expenses. There’s a $5.00 minimum contribution per pay period to your Holiday Club account. On November 1, the Holiday Club account balance is transferred to your savings or share draft account. You can QUE it out on November 1 from savings or begin writing share drafts on November 1. You are automatically re-enrolled in the Holiday Club every year. You can also make additional deposits over and above your automatic deductions. You may not withdraw money from your Holiday Club account before November 1. If you close your account to obtain the money, all dividends scheduled to be paid to the account will be forfeited and you can’t re-enroll until the next November 1.

The Money Market account is designed for those members who have built up a substantial amount of savings. HFCU offers competitive rates on balances over $1,000.00. Money Market accounts allow 6, pre-authorized transfers per month.

Those Are Great Savings Options, But What About A Checking Account?

Your Credit Union is full-service, so checking accounts are also offered. They’re called share draft accounts. You write drafts or checks just like you would on any other checking account. This is a very cost-effective account for our members in the Memphis area. However, we discourage share draft accounts for our out-of-town members unless they are paid by Harrah’s Entertainment, Inc., or Hilton Hotels Corporation payroll in Memphis or Six Continents Hotels payroll in Atlanta or have previous experience in banking by mail. The possibility of lost or delayed deposits coupled with the timely clearing of share drafts creates a situation where overdrafts may occur. These situations are burdensome to the member and to the Credit Union to resolve.

If you choose to open a share draft account there are several convenient, monthly savings features. No minimum balance is required and no monthly service or transaction fees are charged. Plus, you retain a carbon-less copy of each draft (check) you write. That means there are no canceled checks for you to keep up with. Also, direct deposit and overdraft protection are available. (There is a $27.00 charge for each overdraft and a $1.00 charge for each incident of overdraft protection.) Debit cards are also available for qualified members. You receive monthly statements of this, and all your Credit Union accounts, when you have a share draft account.

LOANS

Savings are the cornerstone of any sound financial plan, but sometimes it makes more sense to take out a loan for special needs. Hospitality Federal Credit Union offers a complete line of loans – auto loans, second mortgages, home equity loans, share secured, unsecured, and line of credit loans. They typically carry lower-than-average interest rates. Below are a few helpful terms and their definitions.

Unsecured loans – money is loaned on an individual’s signature only; also called signature loans.

Secured loans – any loan supported by collateral such as credit union shares (savings), liens against cars or real estate, etc.

Collateral – assets pledged by a member against a loan.

Annual percentage rate – simple interest. At the Credit Union, you pay interest on the unpaid loan balance with no prepayment penalty.

What Are The Credit Union’s General Lending Policies?

HFCU is an equal opportunity lender - the Credit Union does not discriminate against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age. This prohibition applies as long as the applicant is old enough to enter into a contract even if all or part of the applicant’s income is from a public assistance program or if the applicant has, in good faith, exercised any right under the Credit Protection Act.

All members are eligible to apply for loans as long as they are of the legal age necessary to enter into a contract. Loan approval is based on your ability to repay, your debt structure, your assets, collateral offered, your credit rating, length of service with your employer and a minimum savings account balance of $25.00. New members are immediately eligible to apply for a loan.

A member who is delinquent on an obligation with the Credit Union must bring their account current before additional money will be loaned. No delinquent member may withdraw funds and leave a balance below the amount of their delinquent liability to the Credit Union.

No single loan will exceed the maximum amount set by the National Credit Union Administration (NCUA). No member will be granted loans, which in aggregate, exceed the maximum amount set by the NCUA.

A lien will be applied if collateral is used to obtain a loan.

Most loan rates will be determined by a managed risk module score. For secured loans, the rate is assigned according to the risk score and the loan term. For unsecured loans, the rate is assigned according to the risk score.

What Do I Need To Know About Credit Union Loans?

Your loan can be automatically paid back through payroll deduction. There is no prepayment penalty if you decide to pay off your loan early.

If you change employment, you are still responsible for making payments to the Credit Union. Just let the Credit Union know if you are changing employers, and we will send you a coupon book which will enable you to make monthly payments. When we convert your loan from payroll deductions to monthly payments, we use a formula to determine what the new payment amount will be. We will multiply your current payment by the current number of yearly payroll periods and then divide by twelve months. The final figure will be your new monthly payment.

How Do I Apply For A Loan?

Applying is easy! The Credit Union accepts applications by telephone, FAX, mail, internet, and in person. Loan application forms are available at your Human Resource or payroll office. If you apply by telephone, it is important to have your personal information handy so that the interview process can go smoothly and efficiently. When you submit a written application make certain all blanks are filled in. An incomplete application will be returned. Income verification may be required.

All loan applications (except for fully share secured) are subject to a $20.00 loan application fee (that is taken out of your savings). Applications must also be completed by any co-applicants if required and income verification must be provided for those individuals also. Please Note: There are certain circumstances that will require a married applicant, who resides in a community property state, to apply with their spouse. If the application is for secured credit, and the applicant is married and resides in a community property state, a joint application is required. In addition, the question on the application which references the marital status of the member must be answered if the applicant resides in a community property state. (At the time of this printing, the community property states were: AZ, CA, FL, GA, IL, LA, MS, NM, NV, TX, WA, WI).

Once the Credit Union receives the loan application, it is prepared for a loan officer’s review. Decisions on almost all loans are made within one hour of receipt of all necessary papers. If the loan officer needs additional information or if an application is incomplete, the processing time will be longer. Every effort is made to provide decisions on all applications within 24 hours. However, if the application is for a home equity loan, the underwriting guidelines require a longer processing time because of the nature of the loan and collateral. We will always try to give you a time estimate for the loan decision.

It is important to make sure that all applications are complete so time is not lost in the review process. If your loan application is not approved, you will receive a Notice of Action Taken or Statement of Credit Denial. Approved loan checks are mailed to the work location and credit denial notices and incomplete applications are mailed to the member’s home address. Applying members are discouraged from calling the Credit Union before a reasonable period of time. Calls could slow down the processing of loans.

What Types Of Secured Loans Are Available?

Auto Loans

Hospitality Federal Credit Union offers very competitive auto loans. Interest rates are established under the Credit Union’s Managed Risk Program. The rate you pay is determined by your credit history plus the term of your loan. In order to serve our members better, all auto loan financing decisions are made within one (1) hour of the receipt of all necessary application documents.

The automobile loan rates apply for financing vehicles up to 6 model years old. Special financing can be arranged for vehicles that are 10 model years old. Contact a loan officer for details. For qualified borrowers, the Credit Union can finance up to 100% of the vehicle Manufacturer’s Suggested Retail Price (MSRP) or the bottom line of the purchase order (if less than the MSRP) for new cars and up to 100% of the NADA retail value (excluding options and deducting for high mileage) for used cars. The Credit Union may offer to lend a lesser percentage depending upon the qualifications of the applicant. The member will determine the term of the loan whenever possible and the term of the loan will be used for establishing the rate the member pays on the loan. The maximum car loan term is seventy-two (72) months. The Credit Union may exceed this term maximum on certain big-ticket luxury items with Management approval. The maximum auto loan amount is $50,000.00 on any one vehicle (or up to $85,000.00 with the approval of the Credit Union Managing Director).

The Credit Union may loan the NADA loan value (not retail) plus one months’ gross salary on any auto older than 6 years but less than 10 years. The maximum term will be thirty-six (36) months and the rate will be equal to the member’s unsecured risk-based rate.

The Credit Union may combine two auto loans into one consolidated auto loan. In this case, the Credit Union will retain title to both vehicles and will assign the risk-based rate applicable to the term used for the loan. In the event that a member sells or trades one of the autos on a combination loan, release of the title may be allowed if the remaining loan balance does not exceed the value of the vehicle that the Credit Union continues to use as collateral.

The Credit Union also offers pre-approved car loans. To arrange for financing in advance, simply complete a loan application. Indicate on the application the maximum dollar amount, the number of months you’d like financing for, and if it is for a new or used car. Submit the application along with verification of income. The Credit Union will make a decision within one hour. If you’re approved, the Credit Union will issue you a commitment letter that is honored for thirty (30) days. This commitment may be extended for another thirty (30) days upon request.

You find the car you want and bring or send the Credit Union a purchase (buyer’s) order from the dealer showing make, model, year, serial number, options, and purchase price. In addition, please provide the Credit Union with a copy of the car window sticker. If the purchase (buyer’s) order and other papers are complete and within the agreed terms, the Credit Union issues a check the same day. You simply return to the dealer with the check and drive away in your car.

If your vehicle is financed through another lender you might consider our auto refinance program. Simply apply for financing as if you were buying a new car. If approved, the Credit Union will pay off your current lender. This option frequently has the benefit of lowering your monthly payments and decreasing the amount you pay over the life of the loan.

The Credit Union will require proof of adequate insurance coverage on your car. Your policy must show the Credit Union as a lienholder on the car.

Home Loans

Another important category is home loans and the Credit Union provides several attractive home loan products. Many people use Home Equity Loans to make large purchases or to finance college education, since the interest on these loans is tax-deductible if the loan amount is under $100,000.00. Hospitality Federal Credit Union offers both a variable-rate Home Equity Line of Credit and a fixed-rate, closed-end Second Mortgage loan. The Credit Union is currently authorized to make Home Equity loans and Second Mortgage loans in the following states: AR, CA, FL, GA, IL, LA, MS, NJ, NJ, NV, TN.

Hospitality Federal Credit Union offers Home Equity Lines of Credit (HELOC) with up to 100% financing. Certified appraisals are required for Home Equity loans over $25,000.00. Some closing costs may apply. The initial draw or advance on the loan must be at least $10,000.00. The maximum loan amounts will be $100,000.00 if the loan-to- value ratio is less than 80% or $50,000.00 if the loan-to-value ratio of the loan is between 80% to 90% and $25,000 if the loan to value is greater than 90%. The HELOC has a 5-year draw with a 15-year amortization schedule.

The rates on HFCU’s HELOC are hard to beat. The interest rate on the Home Equity Line of Credit is based on the average prime rate published in the money rates column of the Wall Street Journal plus or minus an established number of percentage points. Rates are subject to change monthly on the first day of the month.

The Second Mortgage allows qualified members to obtain a loan using the equity in their home and fix the rate they are charged. The maximum loan amount is $50,000.00 and the minimum loan amount is $5,000.00. The Credit Union will loan a maximum of 100% of the appraised value of the home (less the principal balance on the first mortgage) as determined by a licensed appraiser. The rate on this loan is fixed for the term of the loan up to a maximum of five (5) years. The rate charged will be fixed at 1%, 2%, 3%, 4% or 5% above the Prime Rate at the time of closing depending on a loan-to-home value ratio of 80%, 85%, 90%, 95%, or 100% respectively.

Besides auto loans and home mortgages, the Credit Union has several other types of secured loans available. For instance, Credit Union members who are saving wisely may get a 100 percent share-secured loan regardless of credit. This type of loan is made when an amount equal to what you want to borrow is already in your savings account. That amount is pledged as “security” against the loan (so no credit check is done). Loans over $2,000.00 may be repaid over a term up to seven years. The interest rate charged on a fully share-secured loan is currently 7.50%. Also, certificate secured loans can be made at two percent (rounded up to the nearest ¼ percent) over the dividend rate you are receiving on the certificate. The term of the certificate will be extended for the life of the loan but the certificate and the loan must mature at the same time, so any early payoff of the loan will cause the certificate to mature.

Loans that are less than 100% share-secured, but are backed by some Credit Union savings, are considered partially secured. You can take up to thirty-six (36) months to repay this loan. The interest rate is determined by the Managed Risk program and the rate that you pay is the signature loan rate that is assigned according to your credit history.

You’ve Told Me About All The Great Loans I Can Get If I Have Collateral . . .

What If I Want A Loan With No Security Offered To The Credit Union?

Hospitality Federal Credit Union offers two unsecured loans – a Line of Credit and a Signature Loan. You can not have both of these types of loans at the same time. The maximum amount for a signature loan is two month’s gross income or combined gross income if the member applies jointly. The signature loan may not exceed $5,000.00. The maximum amount for an unsecured line of credit is two month’s gross income or combined gross income if the member applies jointly. The unsecured line of credit loan may not exceed $10,000.00.

The Line of Credit loan is available to members with excellent credit ratings and repayment histories. Once you’ve been approved for a Line of Credit, you can obtain advances without reapplying (we do, however, require an annual review of your credit standing, income, and financial obligations in order for you to maintain your line of credit). The variable payment option is designed for monthly billing because the payment amount may change with each billing cycle.

The interest rate on the Line of Credit Loan is based on the prior quarter’s average 26-week T-bill rate plus six percentage points rounded up to the nearest half-percentage point.

An alternative to the Line of Credit is the fixed rate Signature Loan. Again, the maximum you can borrow is two month’s gross salary. The loan must be paid back in 36 months or less. The interest rate is determined by the Credit Union’s Managed Risk Program and this rate is fixed over the term of the loan. As with any loan product, rates on loans are periodically reviewed and these rates are subject to change. However, you should always ask for and be quoted the current interest rate range at the time of application. You must reapply each time you want more money in the form of a Signature Loan. Also remember, you cannot have a Line of Credit and a Signature Loan at the same time and our minimum loan amount is $300.00. We may require that you pledge savings in order to receive a Signature Loan. When savings are pledged, we mean current and future savings. You must maintain current savings deposits plus the new loan payment.

Hospitality Federal Credit Union also offers special signature loans during appropriate times of the year. A Christmas Loan is offered during the fourth quarter of each year. This loan carries a special rate and special terms that are announced in October of each year. Periodically, special signature loans are available for the vacation season or other promotions. Members should always watch their credit union communications for announcement about loan specials.

CREDIT CARDS

Hospitality Federal Credit Union offers members its signature VISA Classic, VISA Gold and secured VISA Classic credit cards. Each card carries the full benefits of VISA card usage. The rate structure on the VISA Classic and VISA Gold cards follows the risk-based lending plan applied to unsecured loans and auto loans. The rates are structured according to this plan and an index based on the Prime Rate and are subject to change with appropriate notification to the cardholder. In no case, however, will the interest rate exceed the maximum limit set by NCUA every eighteen months. The secured VISA Classic rate is set at the current Prime Rate plus 3% and is subject to change as the Prime Rate changes.

Any member is eligible to apply for a credit card. A member may have a credit card limit of up to two (2) month’s gross income or combined gross income in total unsecured obligations including (line-of-credit, signature loan and credit card limit) owed to the Credit Union at any time.

Keeping Tabs On Transactions, Your Account Statement.

Once I have Savings Accounts and Loans, How do I Keep Track of Them?

You receive a monthly or quarterly statement that records all the activity in your accounts for the month or quarter.

Another way to keep track of account balances is through QUE. But QUE is more than just a way to keep tabs on your accounts. It’s also a quick way for you to withdraw money and handle most of your Credit Union money matters. So let’s take a closer look at QUE.

What Is QUE?

QUE is a Quick, Unique, and Easy way to handle your Credit Union money matters using a toll-free number. It’s a computerized system that allows you to do your banking with a touch-tone phone. The voice prompts on the QUE system will easily guide you through every QUE transaction.

There are many advantages to using QUE:

• It’s a quick, accurate way for you to get account information and withdraw money.
• It improves the Credit Union’s service to you. How? It reduces routine requests made over the Credit Union telephone lines so that the staff can better handle non-routine requests.
• It’s available 24 hours a day, 7 days a week.
• Your account cannot be activated without your personal authorization code number, and you’re the only one who knows it.

Use QUE to check account balances, to see if a check has cleared, to transfer funds from one account to another, or even to make check withdrawals. All withdrawal requests received by 3:00 p.m. any business day are mailed the same day. All others are mailed the next business day. You’ll get details of every QUE transaction on your regular account statement.

Thousands of members are already on QUE. If your time and access to your money are important, then you should also get on QUE.

QUE Transactions

Frequently, calls to our office have been for two reasons. One – “How much do I have in my account?” and, Two – “Send me some money.” QUE handles these simple transactions so easily and it’s TOLL-FREE! For your reference, we have duplicated the menu structure for the QUE transaction system to show you how easy it is to inquire about the share balance or to withdraw funds.

It’s our estimate that over half of the calls to the Credit Union have historically been for these simple transactions that QUE is designed for. With more routine calls directed to QUE, we will be easier to reach for non-routine calls. To reach QUE dial 1-800-222-4428 outside the Memphis area or 684-7220 if you reside in Memphis. Simply fill out the QUE application form available at your property or from the Credit Union. You can send it in with your Credit Union membership application or apply any time thereafter. Allow three to four weeks for processing before you try the system.

Click here for the Que Call Flow

Click on the link below to view our current newsletter in PDF format. If you do not have the acrobat reader, visit www.adobe.com to download it FREE!

Hospitality Federal Credit Union Schedule of Fees
(effective October 1, 2006)

ADMINISTRATION

If you are responsible for posting employee deductions or for administering other Credit Union activities at your location, the following section explains how to handle these matters quickly and accurately.

Posting Of Employee Deductions

Hospitality Federal Credit Union offers a quick and efficient way to remit your employee deductions. Prompt posting of employees’ payroll deductions helps avoid hassles later on. Please follow these procedures to ensure your co-workers’ Credit Union transactions are recorded promptly and accurately.

Our method for the remittance of payroll deductions is called Automated Clearing House (ACH) processing. The Credit Union can receive your deductions through ACH from the Federal Reserve Bank.

ACH has many advantages. For example, the Federal Reserve can deliver your Credit Union deductions on the same date as your employees’ paychecks. This eliminates the time it takes to mail your check and deduction register. Employees’ deductions received through ACH are posted within 4 hours of receipt by the Credit Union. Once you’ve set up your payroll through ACH, the Federal Reserve will automatically debit your payroll through ACH, the Federal Reserve will automatically debit your bank account for Credit Union deductions; and you don’t have to mail the Credit Union a check or a payroll deduction register. That’s a real time saver!

To transmit your Credit Union deductions through ACH:

Contact your bank and request ACH processing for your deductions.

Provide your bank with a list of the employees’ names, social security numbers, and each individual deduction amount. (Do not include account number.)

Use the routing number 2840-8447-3 (the Federal Reserve Bank will ask for this number) to send your deductions to the Credit Union.

If you have questions about ACH processing matters, please call 901/684-7241 or 901-684-7242. Our representative will be more than happy to assist you or your payroll department.

COMMONLY ASKED QUESTIONS

How Do I Become A Member Of The Credit Union?

Complete the applicable sections on the front and back of the membership enrollment card obtained from your employer. On the front is your account holder information as well as a section for the authorization of your payroll deductions. On the back of the card, each member should make an ownership choice from those listed. This is where a member will designate a joint owner or beneficiary if they chose. As little as $5.00 per pay period plus a $10.00 one-time membership fee qualifies you as an active member. You must maintain a minimum balance of $25.00 in your share account.

How Do I Withdraw Money?

To request a check by telephone, members must use the QUE telephone service. This service is accessed by a personal authorization code and a touch-tone telephone. There is no minimum withdrawal amount and the Credit Union provides a toll-free number for members located outside of Memphis.

Members may withdraw by telephone by calling our main number (901) 684-7200 if you are requesting a Western Union money order. There is a fee (currently $25.00) for using this service. Members can mail in withdrawal requests and mail in deposits to Hospitality Federal Credit Union, 5100 Poplar Avenue, Suite 214, Memphis, Tennessee 38137.

How Do I Close My Account?

Send in a written authorization to the Credit Union. Include your name, mailing address, account number and/or Social Security number and your signature. We make every attempt to process your request the day it is received. Also, make sure that you notify your payroll source to stop your Credit Union deductions. Payroll deductions received after an account is closed are returned to the employer. If you are moving, notify the Credit Union of your forwarding address to ensure proper receipt of your funds and final statements.

How Do I Apply For A Loan?

You must be an active Credit Union member with at least $40.00 in your regular share account. However, the loan application may be submitted at the same time that you submit your membership enrollment card. If already a member, you may choose to apply by telephone, FAX, or by mailing in an application that you can obtain from your Credit Union Member Representative.

I Need A Car Loan, But Financing With The Dealer Seems Easier, Can You Help?

Yes, just apply for a pre-approved car loan. Plan your purchase in advance and submit a loan application to the Credit Union. Indicate the loan amount and term that will fit your budget, forward your verification of income and, upon approval, you will be given a commitment letter valid for thirty (30) days. That gives you time to select the car of your choice. Normal guidelines of loan amounts and terms apply.

If you did not submit an application for a pre-approved car loan and you are ready to buy, simply call the Credit Union directly from the dealer location or from your home. The loan officers will review the application and have an answer for you in one hour or less. If you have already chosen your car, send a copy of the purchase order and window sticker by FAX to the Credit Union. That will speed up the process even more.

I Am Interested In Purchasing A New Car….

. . . Can you provide me with information to help me negotiate my best price?

The Credit Union utilizes a vehicle pricing information service call PC CarBook. PC CarBook offers the potential car buyer information on the dealer invoice and manufacturer’s Suggested Retail Price on any vehicle sold in the United States. To utilize PC CarBook to its fullest advantage, members should conduct some preliminary shopping to identify a vehicle or vehicles that they are interested in purchasing. Once they have done this, our Member Services Department can access information on those vehicles and provide them with a printout of standard equipment, available options, pricing, and any consumer related information that is available. When armed with this information, you become an informed buyer and are likely able to negotiate a more favorable price for your purchase.

I Have Mailed A Loan Application To The Credit Union . . .
… when will I know your decision?

Decisions on all auto loans are made within one hour of receipt of all necessary papers. We make every effort to process all other loans within one hour as well but during peak periods, processing may take up to twenty-four (24) hours. Remember that when you mail an application, we are dealing with the mail service. The usual mail time to get the loan application to the Credit Union, to process the loan, and to mail it back to you must be given consideration. We know everybody is anxious to know about their loan, but calling the Credit Union for the status of an application only slows down the processing. We will call you if your loan has been approved.

Don’t forget that the best method for applying for a loan is by telephone. The Credit Union employee can make sure that we get all necessary information during the interview process and ensure a faster processing time.

As A Credit Union Member Representative, What Should I Do If…

. . . one of our employees terminates and I know or suspect they have a loan with the Credit Union?

Notify our collection department immediately (or encourage the employee to do so) and give them all information regarding the change in status of your former employee. Your help will be greatly appreciated and may help the Credit Union collect an account which otherwise might be a problem. The fewer charged-off accounts we have, the better rates we can offer on loan and savings accounts.

If an employee takes a leave of absence for any reason and they have a loan with the Credit Union, they are responsible for paying the Credit Union directly for their scheduled loan payments. Under no circumstances should an employee with a loan be told that their loan payments are suspended for the duration of their leave of absence.