Line of Credit
On those rare occasions when adequate funds are not available, MCCU’s pre-approved Line of Credit can help your credit union through a liquidity crunch. There is an annual fee of 3 basis points (0.003) assessed on the total line of credit. You can access the line for any liquidity need – including unexpected loan demand or increased settlement activity.
The credit limit is based on your expected needs, but may not exceed the maximum amount calculated based on your credit union’s reserves and undivided earnings.
As for how it works, the process is quick, easy and virtually invisible. Your credit line is automatically accessed when your Overnight Account drops below your daily settlement balance. Or you can simply contact an MSR to request an advance. And since we use the Fed Funds Target Rate as our index, you can be sure to pay a competitive rate that is sensitive to changes in the market.
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