Published by the New Jersey Credit Union League, www.njcul.org

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In this issue:

1. Education & Training Helps Broaden Your Horizons
2. NCUA Proposes to Reincorporate Federal Credit Union Bylaws into Regulations
3. Training for Supervisory Committees on BSA Independent Testing Offered By NJCUL
4. Give Your Credit Union The Recognition It Deserves!
5. The League's Compliance Department Provides Telephone Support
6. 73rd Annual Meeting & Convention - September 23-25, 2007
7. Ad Coop Media Buy In the Works
8. Great Golf on A September Morning
9. GAO Study Debunks Banker Complaints
10. Beyond Property Tax Reform
11. New Jersey’s Presidential Primary
12. Do Your Members Count?
13. Are You Connected?
14. Jobs, Jobs, Jobs…

Education & Training Helps Broaden Your Horizons
At the NJ Credit Union League, two important sessions were held in May. Credit union leaders and board members attended CU Ratios and Financial Statements on May 8, 2007 and lending professionals attended Advanced Lending Strategies II on May 16, 2007.

The Small Credit Union Roundtable was held at the League office in Hightstown on May 19, 2007. The topics covered were Human Resources and BSA.

The Compliance Roundtables featured a speaker on Website Compliance that attendees found very valuable and informative. Thank you to North Jersey FCU for hosting one of the roundtable sessions.

Mark your calendar for June 27, 2007 for the next Lending Roundtable session: “Strategies to Grow Your Loan Portfolio” being held at McGraw-Hill Employees FCU. Speakers from CUDL will present “Keys” to a Successful Automotive Indirect Lending Program. CU Mortgage will offer information on What Credit Unions Need to Know about the Rest of the Mortgage Industry and How to Compete. If you have not yet participated in a roundtable, why not give it a try? Come and experience the power of networking. See what the concerns are of other credit unions just like you!

Have you communicated the information regarding the Supervisory Committee Conference to your committee members? It’s not too late to sign up for the Supervisory Committee and Internal Audit Conference being held in Atlantic City on June 24-27, 2007. Enjoy all the education at this multi-day conference or select a day or two of learning to meet your committee members’ needs. View the PDF file on our website under Great Educational Opportunities in June.

With summer almost upon us and staff members looking to begin taking vacation, it is the perfect time to try the convenience of a Quick Bite session! There are a variety of topics for your individual education or to benefit the entire credit union.

June/July Quick Bite Topics:

• Why Members Sue CUs and Win on June 19, 2007
• Tips, Tricks and Traps: Hiring on July 2, 2007
• Build or Improve a CU Call Center on July 11, 2007
• Leadership This Way, That Way and All Ways on July 17, 2007
• Kids’ Stuff – Youth Accounts on July 26, 2007

Registering for a Quick Bite is easy! Just visit our web site and complete a General Registration Form. Be sure to include your e-mail address as the instructions, dial up access codes and handout material will be sent electronically.

For more information on any educational opportunities, please contact Barbara Agin at 609-448-2426 x111 or visit our website: www.njcul.org.

NCUA Proposes to Reincorporate Federal Credit Union Bylaws into Regulations
The NCUA is proposing to reincorporate the Federal Credit Union (FCU) Bylaws into NCUA regulations. The bylaws were incorporated by reference into the NCUA regulations until 1982, when the reference was removed as part of a general deregulation effort. However, a number of recent cases where members have unsuccessfully been able to enforce the bylaws as a contract in state court, has prompted NCUA to propose to reincorporate the bylaws into the regulations. This change clarifies NCUA's ability to use a range of enforcement authorities, in appropriate cases, to enforce the FCU Bylaws. In addition, NCUA is adding a bylaw provision on director succession, an issue it has previously addressed in legal opinions, and is revising the introduction to the Bylaws to conform it to these changes. The proposed rule is available on the NCUA Web site at http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/P-701.pdf

Training for Supervisory Committees on BSA Independent Testing Offered By NJCUL
The NJCUL will be offering training that provides supervisory committee members with the knowledge and tools they will need to be able to conduct independent testing as required by the Bank Secrecy Act. This training will give supervisory committee members and in-depth understanding of BSA requirements, what to look for when conducting independent testing, and how to do transaction testing. Plan to attend one of these half-day sessions on July 26th, and August 4th at NJCUL in Hightstown, and July 31st at XCEL Federal Credit Union in Jersey City. Look for more information coming soon.

Give Your Credit Union The Recognition It Deserves!
The deadline for awards submissions is fast approaching. Don’t let the opportunity to share what your credit union is doing for your communities pass you by. Submissions are due by Friday, July 13, 2007. Our winners will be honored on Monday evening, September 24, 2007 at the 73rd Annual Meeting & Convention in Atlantic City! If you have not received an Awards Book or if you have any questions, please contact Sandy Langere, Awards Committee Liaison, at (800) 792-8861 x 115, or by email at slangere@njcul.org.

The League's Compliance Department Provides Telephone Support
Ever have a compliance or regulatory issue that you can't find the answer to? How about a debate in the office about what a regulation requires? Well if you do, the League's compliance department is here to help. Every month the League's compliance staff receives numerous calls from credit unions with compliance questions on lending, deposit regulations, collections, operations, policies, bank secrecy act, and other areas that affect your credit union. While the League cannot provide you with legal advice, it can answer regulatory questions as well as point you to or provide you with additional valuable resources. This is another benefit included with membership in the New Jersey Credit Union League. Take advantage of this benefit by calling your League when you need assistance at 800.792.8861.

73rd Annual Meeting & Convention - September 23-25, 2007
New place. New Dates. Great New Opportunities. This year’s Annual Meeting & Convention is poised to be our best yet. Some of the great reasons to mark your calendar: We’ve moved to the Tropicana! That means there will be no more trouble getting rooms! That’s right. Our entire group will be housed under one roof and what a roof it is! With great shops and restaurants, you’ll never have to venture outside, but if you want to, the beautiful September air will be there to greet you. Stay tuned and watch your mailboxes for information on this exciting event! If you’d like to exhibit or know someone who might, please contact Yvette Segarra at 609.448.2426 x103 or visit our home page to download an exhibitor prospectus.

Ad Coop Media Buy In the Works
The NJCUL Advertising Cooperative, in conjunction with the League’s Department of Marketing & Communications will facilitate a media buy to spread the good word about the Credit Union Difference to legislators, citizens and credit union members throughout the state. In keeping with the League’s mission of credit union advocacy, $30K earmarked for advocacy will come from the League’s marketing budget. These funds will pay for some air time on NJN, the statewide TV network, a web presence on politicsnj.com, a major political information web site frequented by legislators, and lead sponsorship of the daylong women’s conference in October -- All About Women. An additional 105K will come from the Advertising Cooperative’s budget and will fund additional air time on NJN, CN8 and several cable stations around NJ. The Coop will also purchase additional web time on politicsnj.com and radio time on WMGQ, WKXW and WCTC. The media mix will cover the entire state of New Jersey, with greater attention coming from the Coop budget to areas where Coop member credit unions are. The media campaign, which will feature the slogan: New Jersey’s Credit Unions: The Difference YOU! and Bob, the Credit Union Guy, will begin in September and run four weeks, which is the maximization of a small budget in an expensive media market.

To find out more about the Cooperative and to view the Ads featuring Bob, The Credit Union Guy, visit: njdifference.com. And look for Bob, The Credit Union Guy at this year’s Annual Meeting & Convention in Atlantic City, Sept. 23-25, 2007.

Great Golf on A September Morning
The New Jersey Credit Union Foundation’s Fourth Annual Golf Outing will be held September 4, 2007 at Knob Hill Golf & Country Club in Manalapan. This is our second visit to this outstanding course, and our fourth fundraiser. Watch your mailboxes for registration materials coming soon, but mark your calendars and plan to join us for the fun and festivities.

GAO Study Debunks Banker Complaints
The Government Accountability Office (GAO) study, conducted at the request of Senator Bernard Sanders (I-VT), found that bank profits have grown by more than double the rate of net income at credit unions. Moreover, 31 percent of banks and thrifts are now organized to avoid corporate taxation.

It found banks received $108 billion in tax deductions and $200 million in tax credits in 2004 alone. By comparison, the Treasury Department has estimated that the value of the tax-exempt status for credit unions will total only $1.4 billion this year.

“This study provides conclusive evidence that all the moaning and groaning by the big banks about unfair competition from credit unions is unfounded. The big banks’ profits are going up and up, as is the compensation of their CEOs, while credit unions have remained focused on providing financial assistance to middle-class and working families. The benefit that Americans get from credit unions outweighs by far the cost of the credit unions’ tax-exempt status,” said Sanders, who requested the study last July while serving in the House of Representatives and before being elected to the US Senate.

The independent investigative arm of Congress also found that:

• Thirty-one percent of all banks paid no corporate income taxes at all by becoming Subchapter S corporations.
• In 2006, banks and thrifts received $146 billion in profits compared to a mere $6 billion in retained earnings for the entire credit union industry.
• Compared to the previous ten years, banks and thrifts experienced double the earnings growth rate of credit unions in 2006 after adjusting for inflation.
• Some banks, like BB&T, have evaded millions of dollars in U.S. taxes by setting-up questionable, or “abusive” tax shelters.
• The cost to American taxpayers for bailing out the Savings and Loan Industry in the 1980s has grown to more than $200 billion in today’s dollars.

“Instead of questioning the tax-exempt status of credit unions, which have helped millions of members with lower fees, reduced interest rates, and better service, the American public would be much better served if Congress took a serious look at the escalating fees, economic concentration, and CEO compensation packages that big banks are receiving,” Sanders said.

For more information on this and other issues contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127 or cabeel@njcul.org.

Beyond Property Tax Reform
While long-awaited property tax relief bills have been signed into law, the jury’s still out on exactly how meaningful the measures will prove. Meanwhile, political corruption revelations continue to surface almost daily, with no end in sight. As the November elections approach there is concern we might see a wave of legislative activism aimed at assuaging general voter discontent. A record number of lawmakers have announced retirement, the most in any one election year in a generation or more. Clearly lawmakers are worried an anti-incumbent tide could be on the horizon. This may spell problems for the private sector. We’re seeing, for example, onerous employee benefit mandates such as 12 weeks of paid family leave (regardless of employer size) and unlimited health coverage for behavioral and substance abuse problems receive broad-based support. With control of both houses of the legislature at stake, the environment in Trenton could prove volatile between now and November 5th.

For more information on these and other state issues contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127 or cabeel@njcul.org.

New Jersey’s Presidential Primary
After years of being essentially ignored by presidential primary campaigns, on April 1, 2007 Governor Corzine signed legislation (S-2193) that moved New Jersey’s presidential primary election from June to February. Unfortunately, numerous other states are employing a similar strategy which promises to eclipse New Jersey’s effort to command more attention from presidential hopefuls. Neighboring New York has frontrunners on both sides of the aisle who have already secured the lion’s share of their respective party’s meaningful endorsements here so, despite efforts to the contrary, it seems unlikely New Jersey will prove a serious player in the 2008 presidential nomination process.

For more information on this and other political matters contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127 or cabeel@njcul.org.

Do Your Members Count?
A letter and CD were recently sent to every credit union in the country asking them to update their Project Zip Code (PZC) numbers. Will your members among the millions of credit union members to stand up and be counted? Help us ensure our state and federal lawmakers understand just how of many of their constituents are credit union members. It takes just a few minutes and no personal data is ever collected.

PZC is a constituent matching program that connects credit union members with their state and federal lawmakers. As a result, we’re able to illustrate to elected officials the number of credit unions members in their district, which is an extremely powerful advocacy tool.

No personal data or individual information leaves your computer. PZC receives only the counts of records successfully matched. All of your data remains confidential and secure and Project Zip Code is compliant to the privacy laws created in Gramm Leach Bliley.

For more information contact Chris Abeel, the League’s director of government affairs at 800.792.8861, ext 127 or cabeel@njcul.org.

Are You Connected?
The League’s bi-monthly government affairs newsletter Capitol Connections keeps readers plugged-in to the public policy arena. It includes briefings on important goings-on in Washington (On-the-Hill) and Trenton (Under-the-Dome) and has sections on credit union movement grassroots activities (In-the-Trenches) and key issues (On-the-Soapbox) as well as backgrounders on who’s who (Meet-the-Players), interesting facts (Trivia-not-Trivial) and important calendar items (Save-the-Date).

If you’re not already plugged-in, contact Chris Abeel, the League’s director of government affairs to be added to the Capitol Connections electronic distribution list.

Jobs, Jobs, Jobs…
Find a job at a credit union or post a vacancy. It’s easy if you are a league member. Click here to see current vacancies.