Wednesday, August 24, 2011 11:31:00 AM
With the August 31 deadline for credit unions to decide on whether or not to capitalize Alloya Corporate FCU quickly approaching, the corporate's capital numbers continue to grow, with total capital currently at $59 million and counting. However, with only one week until the deadline, the corporate has not reached its $70 million minimum goal.
Currently, Alloya has received capital commitments from 75 credit unions in New Jersey, bringing the total membership at Alloya to 850. Several more have board approval and Alloya is waiting to receive their paperwork to be counted. Still, many others are weighing their options and have yet to give an indication.
Credit unions that subscribe by August 31st will receive benefits that will not be extended to those that join after that date. In particular, they are eligible for a much larger line of credit than they would have after the initial subscription period. Credit unions that capitalize by Aug. 31 will have an LOC thirty times their contributed capital amount. Credit unions that capitalize between Sept. 1 and Oct. 31 will have an LOC at twenty times capital.
With the option of subscription on the table, the Private Placement Memorandum, Subscription Agreement, and related documents were sent via UPS to each credit union member of Members United Bridge Corporate to capitalize the newly formed Alloya Corporate. With the deadline approaching, Alloya is requesting that credit unions that wish to participate fax the subscription paperwork to 1-866-788-2377 as soon as possible.
For more information and to visit Alloya's Capitalization Central, please go to www.alloyacorp.org.