Loans

Line of Credit
Corporate Central Credit Union’s line of credit establishes a pre-determined maximum aggregate loan limit for your credit union. Once the limit is determined you may access any of the liquidity sources that we offer.

Settlement Loans
A settlement loan is available for daily settlement needs.  A settlement loan can be advanced manually or automatically at the end of the business day.  The Settlement Account allows members to combine cash management and settlement.  Loans can be advanced daily to cover settlement needs and interest that is collected as funds are made available.

• Interest rate:  the interest rate is declared by approximately 3:00 pm CT each business day.  The interest rate for a non-business day is the same as the previous business day.
• Interest payment:  interest on a settlement loan is due as funds become available.
• Interest calculations:  interest is calculated on an actual (365-day) basis.

Fixed Rate Term Loans
A fixed interest rate term loan has maturities ranging from less than one-month up to seven-years.  Members have the option of choosing bullet maturity (100% principal due at maturity) or amortizing the payments over the life of the loan either quarterly or monthly.

• Interest rate:  the interest rate is disclosed for each term loan on the agreement and remains fixed for the life of the loan.
• Interest payment:  interest on a fixed term loan is collected monthly or at maturity.  Whichever method is used will be disclosed on the agreement.
• Interest calculations:  interest is calculated on an actual (365-day) basis.

Variable Rate Term Loans
A variable interest rate term loan has maturities ranging from three-months up to seven-years.  Members have the option of choosing a bullet maturity (100% principal due at maturity) or amortizing the payments over the life of the loan either quarterly or monthly.

• Interest rate:  the interest rate index is disclosed for each term loan on a term note and loan agreement and will be reset periodically, at a spread to the stated index.  Indexes include but are not limited to the following:  Prime Lending Rate, One-Month LIBOR, or Three-Month LIBOR.  Loans indexed to LIBOR are reset monthly or quarterly on the 25th of the month.
• Interest payment:  interest on a variable rate term loan is collected monthly, quarterly or at maturity.  Whichever method is used will be disclosed on the term note and loan agreement.
• Interest calculations:  interest is calculated on an actual (365-day) basis.

LIBOR Loans
The London Inter-Bank Offered Rate (LIBOR) loan is a short term liquidity source with a one-week commitment. The LIBOR loan offers some of the most competitive rates in the market. The LIBOR loan is executable on Tuesdays only with a minimum advance or payment of $1 million. If Tuesday is not a business day, members may advance on or repay the loan on Wednesday. Participants have until 3:00 pm CT to access this liquidity source. Loan advances or payments outside the above terms are subject to penalty. Other information regarding rates and calculations are as follows:

• Interest rate: the interest rate is set to a spread, solely determined by Corporate Central Credit Union to one-month LIBOR weekly. The rate is declared by approximately 9:30 am CT on Tuesdays.
• Interest payments: interest is paid and posted on the last business day of the month. All accrued interest is due if loan balances are paid in full.
• Interest calculations: interest is calculated on an actual (365-day) basis.

For more information regarding loans, please contact the Investment Department.