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Updated October 23, 2013
Q: My credit union is considering your Remote Deposit Capture product. How does Alloya minimize duplicate deposit risk?
A: Alloya’s remote deposit capture system automatically checks for duplicate items across all of the services we offer – Mobile, ATM, Consumer, Merchant, or Branch Capture (VIP). Suspect items are flagged for review by your staff. By deploying these options for your member through one provider, you maximize your protection against the same item being deposited remotely and at your facility. For more information click here, talk to your Senior Business Consultant, or call Member Services at (800) 342-4328.
Q: Are the SimpliCD purchases considered negotiable certificates of deposit?
A: The answer to this question depends on the type of CD purchased with the corporate or its wholly owned CUSO, Balance Sheet Solutions. Depository Trust Company CDs purchased through SimpliCD are negotiable CDs. However, regular SimpliCDs are placed directly to issuers with Primary Financial* acting as the administrator, these CDs are non-negotiable. For more information on SimpliCD, please call Member Services at 800-342-4328.
* Primary Financial is a credit union service organization (CUSO) owned jointly by several corporate credit unions, including Alloya. Primary Financial manages SimpliCD (pronounced “simplicity”), a turnkey certificate of deposit program established in 1996.
Q: How do I get to the link for ACH processing?
A: To access Alloya’s ACH system, please sign on to Premier View. If you have any questions, please contact Members Services.
Q: Does Alloya offer any type of Western Union service?
A: Yes, Alloya offers several funds transfer payment options, including domestic wire transfers, international wire transfers, automated telephone transfers, automated settlement and Western Union. These products are delivered to credit unions through the corporate’s online account system: Premier View. For more information on these services, please click here.
Q: Where can I find fee information?
A: Members can view the most recent fee schedule on their Premier View homepage. Non-members should contact Member Services for information about fees.
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Q: Can our credit union put in more than the minimum capital required?
A: Yes, credit unions can contribute more than the amount requested of them in the Private Placement Memorandum. The additional capital will increase the credit union’s deposit cap and line of credit caps.
Q: What happens to perpetual capital when credit unions merge and both credit unions have perpetual capital with Alloya?
A: In the case of a merger between two member credit unions, the perpetually contributed capital is combined into the account of the surviving member. Assuming that settlement activity remains the same for the merged entity as in the past, no additional capital would be required. If settlement activity were to decrease, the credit union could attempt to sell the excess to another credit union that needs to purchase additional capital. In any event, since the capital contribution is perpetual, any excess could not be returned to the credit union by Alloya.
Q: Will the LOC that my Credit Union receives from Alloya Corporate be a "Committed" line or simply an "Advised" line? Can we have the option of one or the other, and if so, what are the differences?
A: Alloya provides capitalized members with an advised line of credit. The difference between committed lines of credit and advised lines of credit: Committed lines provide guaranteed funding, as long as the member is not in default, and they also require the issuer to maintain reserves, charge significant fees and maintain strict lending covenants and events of default. Advised lines do not provide guaranteed funding, but they are much more flexible. While the funding is not guaranteed, throughout its history the corporate has never failed to provide a liquidity advance under an advised line of credit. In addition, term funding is available to members through their advised line of credit. In rare circumstances, Alloya may be in a position to provide a member with a Committed Line of Credit. If you have any questions, please contact Alloya Corporate’s Lending Department.
Q: How are capital contributions calculated?
A: Capital contributions are based on three days average daily debit settlement, not assets. The capital calculation is: PCC amount = (avg. daily debit settlement for the most recent calendar quarter) x (3 days) x (5%).
Q: If I deposit $100,000 in PPC, how much will I have in deposits and LOC?
A: A capital contribution of $100,000 yields a deposit cap of $2,000,000 (20 x $100,000) and a line of credit cap of $3,000,000 (30 x $100,000)
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Q: Where can I access Alloya’s ACH Self Audit Letter for 2012?
A: Our ACH Self Audit Letter for 2012 is available on Premier View. To access the letter, please click here. Note: The 2013 letter will be available during the fourth quarter of 2013.
Q: NCUA LETTER 12-CU-03 on Temporary Corporate CU share guarantee. I would like to know how the Corporate’s FED EBA sweep accounts are treated after the guarantee ended, if a corporate CU were to fail and what steps have been taken to reduce risks?
A: With the expiration of the share guarantee program on December 31, 2012, deposits at corporate credit unions are insured up to the standard share guarantee maximum of $250,000. NCUA has stated it is…Click here to read the entire answer.
Q: How dependent is Alloya Corporate on long-term investment spreads to generate income?
A: Due to Alloya’s unique business plan, the corporate is significantly less dependent on longer-term investment spreads and we have limited certificate offerings to short-term CDs, further reducing our risk profile.
Q: Isn't perpetual capital another name for a prepaid asset and would it not have to be amortized over some useful life? This deposit is presumably not refundable.
A: Perpetual capital is not another name for a prepaid asset; it is another name for an investment. As an investment, it needs to be periodically reviewed for impairment (instead of being amortized). As long as capital has not been depleted, is paying a dividend and the credit union is benefiting from the corporate services, accountants would likely have a difficult time making a case for impairment. However, check with your independent auditors regarding accounting treatment.
Q: What benefit will the perpetual capital be to Alloya after the RUDE becomes the primary PCA component?
A: The new regulation caps how much PCC can be counted towards capital ratios over time. The PCC cap on the calculation is designed to protect member-contributed capital by ensuring that the organization builds RUDE. PCC is still a component of capital, though at a lower level, and therefore is important to the organization going forward. This feature of the regulation is why Alloya is seeking to keep the initial PCC contribution as low as possible, since we plan to generate sufficient earnings and grow RUDE to become the primary form of regulatory capital in the future.
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Q: What sort of training will Alloya board members receive to make sure they know what they are doing?
A: The Alloya Board will have an on-going training calendar that presents quarterly training sessions of 30-60 minutes on various subjects such as ALM, risk management and business continuity planning. This schedule will be established each year in advance for the coming year and the training will be provided by webinar, in-person or both. Alloya plans to use both internal staff expertise, as well as outside experts to perform the training and volunteer attendance at such training will be tracked and reviewed by the full Board. Further, the Nominating Committee will take into account training attendance as part of its process in determining who to nominate as board candidates.
Q: Please explain what kind of commitments Alloya Corporate will look for from their board if a credit union CEO is considering it. Where will the board meet and how much time in a month will the board member typically commit?
A: The bylaws of Alloya state that “A regular meeting of the board must be held each month at the time and place fixed by resolution of the board. One regular meeting each calendar year must be conducted in person.” The actual number of in-person board meetings and their location(s) will be determined by the board. The likely board meetings schedule will be in-person quarterly with conference calls held in the intervening months. Preparation and meeting time will vary based on the information presented and the business to be considered, but as a guide one to two days for preparation and four hours for conference calls and eight hours for in-person meetings (not counting any travel time) would be reasonable. For additional information contact one of Alloya’s current board members, or call Member Services.
Q: Is there a term limits for the board members of Alloya to ensure an ongoing fresh perspective and provide confidence in the ongoing oversight of this entity?
A: Term limits have not been established in the bylaws, but could be considered by the board in the future. Board members serve for a three year term.
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Q: Has Alloya prepared any reference material/guides for members looking for more information regarding the Consumer Financial Protection Bureau's final International Remittance Rule?
A: The Consumer Financial Protection Bureau's final International Remittance Rule is effective Monday, October 28, 2013. In preparation for this final rule, Alloya has created a Foreign Remittance microsite that provides a high-level overview of the rule, what we are doing to assist members with compliance and additional resources, including FAQs and a recorded training for Premier View users. Please click here to view this site.
Q: What is Alloya’s SWIFT code?
A: We are exploring this possibility, but at this time, Alloya does not have a Society for Worldwide Interbank Financial Telecommunication (SWIFT) code. Please refer to the Wire Instructions on the Help page of Premier View for direction on how to send International funds to Alloya.
Q: Do Capitalized Members have access to the CLF through Alloya?
A: Currently, the CLF is available to any credit union that directly capitalizes with the CLF. Historically, US Central capitalized the CLF for the entire corporate system. With the liquidation of US Central Bridge, the CLF stock held by US Central was redeemed, so the only access that exists today is for those credit unions that purchased stock in the CLF directly. In those cases, Alloya can act as an administrator for the CLF, performing all the functions previously performed as an agent i.e. assisting with collateral pledging, loan applications, loan funding and repayment.
For more information on the CLF, please click here.
Q: All questions related to wire transfers…
A: If you are a credit union member, and have questions regarding wire transfers, please contact your credit union directly.
Q: Does Alloya make Treasury and LIBOR rate forecasts?
A: No, Alloya does not make specific interest rate forecasts. General interest rate forecasts are available by viewing our monthly Economic Update and quarterly Perna’s Perspective, both of which may be viewed by clicking here.
Q: What are your Call Center hours?
A: Our Call Center is available Monday through Friday from 8:00 am ET to 6:00 pm ET / 7:00 am CT to 5:00 pm CT. To reach our Call Center, please dial 800-342-4328.
Q: When do wire transfers at Alloya start going out, and what is the cut-off or final time for outbound wires?
A: Wire transfers begin at approximately 7:00 am ET / 8:00 am CT. For outbound domestic wires, the cut-off time is 5:00 pm ET; international wires 4 pm ET. For a complete list of cut-off times, please consult Member Services.
Q: Is Alloya Corporate Federal Credit Union regulated by the NCUA?
A: Yes, Alloya is regulated by the NCUA. Please see the NCUA Regulations Part 704 - Regulating Corporate Credit Unions.
Q: What are your holidays?
A: Alloya's Holiday Schedule corresponds to the official Federal Reserve Legal Holiday Schedule. Click here to see our holiday schedule.
Q: When reporting the balance in the FED EBA account at month end on the member credit union books, is it acceptable to include the amount in the balance for Alloya?
A: Deposits in the Federal Reserve Bank EBA are not maintained at Alloya. If the credit union’s month-end report specifically states balances at MU/Alloya, it is not correct to include EBA balances in that total. A more generic heading of “cash on deposit at Financial Institutions” would be more appropriate, or the balances held at the Fed and the corporate could be listed separately on the report. Please consult your accountant for specific accounting and reporting guidance and advice concerning your credit union.
Q: What amount is insured at Alloya?