FAQs
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What is the Environmental Conservation Organization, Inc. (ECO)?
Why should I join the Freedom21 Federal Credit Union?
Who can join the Freedom21 Federal Credit Union?
Where does the credit union get the money to make loans?
Who runs the Freedom21 Federal Credit Union?
Who elects the Board of Directors?
- What is a Member?
- Credit unions are cooperatives, not-for-profit financial institutions, chartered by the state or federal government. They are owned and controlled by their members, and organized to promote thrift and provide credit to those who belong. These owners are called "members."
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- Why Join a Credit Union?
- Credit unions only serve members in the fields of membership, usually associations, employee groups, or communities named in their charters. As not-for-profit financial services cooperatives, credit unions return earnings to their members in higher savings rates, better services, and lower borrowing rates, while the Board of Directors are volunteers elected by members.
- Banks are financial institutions chartered by the state or federal
government, which accept deposits and makes loans for a profit. They are owned by groups of
stockholders, whose main interest is to earn a healthy return on their investments.
In contrast, credit unions exist to serve their member-owners, the people who save and borrow there.
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- What is Freedom21, Inc., formerly the Environmental Conservation Organization, Inc. (ECO)?
- Freedom21, Inc. is a not-for-profit, membership organization founded in 1988,
and recognized by the Internal Revenue Service as a 501(c)(4) organization. Its mission is
to promote environmental stewardship while advancing the principles of freedom,
especially in the protection of private property rights and responsible resource use.
We work to achieve our goals through educational publications, web sites, conferences,
and through public policy advocacy at every level of government.
Freedom21, Inc. neither solicits, nor accepts government grants.
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- Why should I join the Freedom21 Federal Credit Union?
- Freedom21, Inc. (formerly ECO) members care about private property rights and
responsible resource use, and are a part of a larger movement, consisting of organizations
that are chronically underfunded, despite the best efforts of members who pay membership fees
and contribute to their favorite organizations. The Freedom21 Federal Credit Union
is designed to help participating organizations build an endowment account which will
continue to pay dividends at the highest current rate paid on Certificates of Deposit.
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- Who can join the Freedom21 Federal Credit Union?
- The field of membership identified for approval by the National Credit Union
Administration is the dues-paying membership of Freedom21, Inc. Both individual and
organization members will be eligible for membership in the credit union.
Once a Freedom21 member has become a member of the credit union, the immediate family
of the credit union member is also eligible to join the credit union.
The immediate family is defined to be: spouse, child, sibling, parent, grandparent, grandchild,
stepparents, stepchildren, stepsiblings, and adoptive relationships.
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- Why does a member of another organization have to become a member of Freedom21, Inc., before joining the Freedom21 Federal Credit Union?
- The law requires a defined and verifiable "Field of Membership" to be served by the
credit union. The field of membership must share a "common bond" evidenced by membership in
the sponsoring organization. Organization members that wish to become
"Participating Organizations" eligible to establish endowment accounts, must have a
mission statement that is consistent with Freedom21, Inc.'s mission statement,
and must participate in Freedom 21 activities. This is a requirement imposed by the credit
union law, and it is carefully monitored by federal regulators.
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- Where does the credit union get the money to make loans?
- The capital used to make loans comes from the deposits made by
members. Members may deposit into basic share accounts, or into certificates of
deposit. Dividends are paid on basic share accounts; certificates of deposits earn a
fixed interest rate based on the time the deposit is held, and the current interest rate
at the time of deposit.
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- What is a share account?
- A share account is a savings account. Every credit union member is
required to subscribe (deposit the equivalent of) at least one share, which has a
par value of ten dollars ($10.00). Every additional $10 deposited into
the share account equals another share. A deposit of $100, therefore,
would equal ten shares in the credit union. A deposit of $1000 would equal 100 shares.
The more money in the share account, the greater the dividend will be.
Every member has one vote, regardless of the number of shares on deposit.
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- How are dividends calculated?
- Dividends come from the profits generated by the credit union
operations. At the end of the dividend period, the credit union's profit -
the difference between the interest earned from loans and the interest paid on
deposits - must be distributed to shareholders in the form of a dividend.
The total amount of profit is divided by the number of shares on deposit to arrive
at the per-share dividend amount. The per-share dividend amount is then multiplied by
the total number of shares held by each member to arrive at the dividend each member is paid.
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- Who runs the Freedom21 Federal Credit Union?
- A board of volunteer officers, elected by its members, runs the credit
union. The Board of Directors appoints all employees, and is ultimately responsible
for the credit union's operations.
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- Who elects the Board of Directors?
- The members of the credit union elect the Board Members at the credit
union's annual meeting. The five Board Members serve staggered terms.
One member of the first board will serve a one-year term; two members will serve two-year
terms; and two members will serve three-year terms. At the first annual meeting, one member
will be elected for a three year term. At the second annual meeting, two members will
be elected to serve three year terms. Thereafter, the expiring terms will be elected on a three
year basis, by the membership.
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- Who decides who gets a loan?
- The Board designates a Loan Officer(s) who has the responsibility of evaluating the loan
application to determine if the loan request meets the requirements of the loan policy. If it
does, the loan is made, subject to available funds. If the loan application is denied, the
denial may be appealed to the Board of Directors, which will make the final decision.
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- Are credit union deposits insured?
- Yes. Each account is insured by an agency of the federal government, the
National Credit Union Share Insurance Fund, which is an arm of the National Credit
Union Administration. Each account is insured up to $250,000. A single depositor may have
multiple accounts, but the aggregate total insured will be $250,000. A depositor may have more than
one account insured, if the ownership of the additional account(s) is shared with another person.
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- How will the credit union serve its members?
- The Internet will provide primary access to the Freedom21 Federal
Credit Union. All transactions will occur on a certified secure site, in much the same way most
banks now offer on-line banking. The credit union will offer an array of on-line banking services
for members, regardless of where they live. Mail and telephone transactions will provide
access and service to those members who do not yet have access to the Internet.
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| Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency |