December 2005     

Credit Union Reaches Major Milestone

By Henry Lamb

The application for charter for the Freedom21 Federal Credit Union was formally submitted to the National Credit Union Administration (NCUA) on November 10. This event is, indeed, a major milestone in the long and tedious process of creating a credit union especially for people who are involved in the efforts to advance the principles of freedom in the 21^st century.

Kaylynn Wilson (left) and Karen Lamb hold copies of the application for charter for the Freedom21 Federal Credit Union, submitted to the National Credit Union Administration on November 10th.

The application consists of more than 300 pages of documentation, information, and forms required by the federal government. Completion of this massive document reflects the work of ECO Board of Directors and staff over several months. Karen Lamb, webmaster, and Kaylynn Wilson, associate editor of eco•logic Powerhouse Online, have led the way in the preparation of the application. Both will be on the management team of the credit union when it begins operations.

Now that the application has been submitted, the ball is in the government's court. It will take several weeks for NCUA to review and evaluate the application. Even though we have made the document as comprehensive and complete as possible, we anticipate that adjustments and revisions will be required, during the review process. These adjustments, however, will be based on the experience of the credit union examiners, and will ultimately improve service and security for our members.

We believe that the Freedom21 Federal Credit Union is a historic first. We know of no other financial institution designed and created exclusively for people who are involved in promoting the issues advocated by the Environmental Conservation Organization. The project promises to provide immediate benefits to its members, and long term benefits to the movement.

Members of the credit union will earn interest on their savings at a rate that is normally higher than commercial institutions. They will be able to borrow money at rates that are normally lower than commercial institutions - because the Freedom21 Federal Credit Union will pay no taxes on earned income. All profits generated by the credit union must be returned to its members, in the form of a dividend. The members actually own the credit union. Their savings represent "ownership shares" on which dividends are based.

The credit union will be eager to make ordinary consumer loans to its members. It will also make loans to qualified member organizations for a variety of uses that improve their effectiveness. A unique feature of the Freedom21 Federal Credit Union will be Endowment Accounts for participating organizations. These accounts are designed to allow the members of participating organizations to contribute to a secure fund that will pay regular dividends to their favorite organizations - forever.

What's next?

While NCUA is reviewing the application, we are getting ready to open for business. There is still much to do to be ready to launch when the charter is granted. We expect this next milestone to be reached shortly after the first of the year. When the charter is issued, we will make an announcement, and then send membership application forms to those people who indicated a desire to join during our membership survey.

If you did not participate in the survey, you still can, by completing the survey form at this website. You can also get more information about the credit union.

Member response to this project has been most encouraging. The survey indicated that members' initial deposits will be nearly three times the minimum amount required to capitalize the operation, and 87% of those responding said they would also contribute to Endowment Accounts of participating organizations. Regular monthly savings by members would total $27,000, according to the survey. This strong response suggests that members are ready to launch this exciting project. We hope every ECO member will be a part of it.

Henry Lamb is the Executive Vice President of the Environmental Conservation Organization (ECO), and Chairman of Sovereignty International.