About the Hill District Federal Credit Union
A community development credit union is a financial institution born of and existing to serve human needs. It is a composite of many elements. It is, first of all, a nonprofit organization chartered under Federal or State Law. It is an organization managed by its members on the cooperative principle of one vote for each member. A credit union is not a charitable organization and does not exist solely for profit.
On October 15,1970 the HILL DISTRICT FEDERAL CREDIT UNION, (HDFCU) was chartered by the federal government under the National Credit Union Administration. The credit union's first location was 1919 Centre Avenue. In 1976 the credit union was moved into the Hill District Citizens Development Corporation's building, a second floor rear office, at 1915-17 Centre Avenue. In 1981, we moved into our present location, 2021 Centre Avenue.
The HILL DISTRICT FEDERAL CREDIT UNION is a nonprofit financial organization owned and operated by its members for the benefit of all who belong. Our goal is a sincere desire to help people help each other by providing a quick, economical source of confidential credit, and by promoting personal economic stability through a convenient systematic savings plan.
Our community's need for a credit union is based upon the necessity of a financial institution in the community that is better prepared by composition and philosophical outlook to effectively deal with the basic purpose of the credit union mission.
Being a community credit union, we have a secondary goal of providing and/or coordinating economic development in the community. While serving as a financial institution, we encourage low and moderate income members to save, spend wisely and establish a good credit rating. As a neighborhood institution, our community credit union is a cooperative with a community agenda focusing on community building and organizing assistance. As a learning institution, the credit union teaches skills such as record keeping, budgeting, accountability, and planning. A share in your community credit union means ownership. The moment you become a credit union member, you become one of its owners. Members help elect the officers and committees, and can volunteer to hold an office. In short, as a member, you help run the credit union.
The credit union is organized into three principal governing bodies:
Board of Directors
Elected by the members
Consists of seven members who are responsible for the direction and control of the business affairs of the credit union. In addition to the duties customarily performed by a board of directors, the credit union board also defines;
- Rates of dividends.
- Interest rates on loans and the maximum amounts which may be borrowed.
- Maximum amounts of shares which my be held by any member.
- Borrowing and investment of funds necessary to transact the business of the credit union.
Appointed by the Board of Directors
May consist of 3 to 5 members who have the authority to approve or deny individual loan applications within the overall limits imposed by the Board of Directors.
Appointed by the Board
Consists of three members who provide the members with the internal checks and balances on financials and operations. Assurance provided that the activities of the credit union are being conducted in the best interest of the members and toward the goals for which the credit union was organized.
The above Board and Committee members are all volunteers. In addition, the credit union is operated by a full-time manager and staff to provide the membership with prompt, courteous service.
The National Credit Union Administration, an agency of the U. S. Government, is responsible for administering the rules and regulations which govern the operation of federally chartered credit unions. Each member account is insured to $250,000 by the National Credit Union Administration, an agency of the U.S. Government.
Credit Union Safeguards - Examinations
Because your credit union operates under a government charter, government examiners inspect it regularly. The laws which regulate credit unions are strict.
Your credit union has a surety bond which is a type of insurance that protects the credit union's money and valuable documents against robbery, forgery, dishonesty, and other hazards. Everybody who handles your money is bonded.
The law states that a percentage of each year's earnings must be put into reserves. The reserves protect against losses from uncollectible debts.
Deposits & Investments
Most of the available money is always on loan to the members. Some cash is kept in a checking account for daily operation, and the remainder is invested in Federal Agency Securities, U. S. Government obligations and bank certificate of deposits.
An annual audit is performed by an independent auditor.
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Field of Membership
Our field of membership open to individuals having the following common bonds: Residents of and persons who are regularly employed or worship in Pittsburgh, Pennsylvania, within the boundaries beginning at the intersection of Sixth Street and Fifth Avenue, extending East to Robinson Street, North on Robinson Street to Allequippa Street to Centre Avenue, extending Northeast on Centre Avenue to Bigelow Boulevard, Northward on Bigelow Boulevard cutting across Monroe Street at the Bloomfield Bridge and continuing Westerly on Bigelow Boulevard to Sixth Street and extending Southeast on Sixth Street to Fifth Avenue; employees and registered volunteers of Community Action Agencies who work in Neighborhood Development Programs in the above described area; employees of this Credit Union; Organizations of such persons; Organizations which propose to provide economic assistance to people within the above described area through the purchase of shares of the credit union; and immediate family members of those above.
In establishing an individual account, the member only is permitted to make transactions on the account. In opening this type of an account, the member should designate a beneficiary. The disadvantage is that the inheritance tax would have to be paid by the heir(s). The beneficiary is not permitted to withdrawal from the account. The entrance fee for an individual account will be $1.00.
A joint account differs from an individual account in that two or more people are involved---the primary member and the joint owner(s). Why a joint account? Because the savings are automatically paid to the joint owner(s). Both the member and the joint owner( s ) may make deposits and withdrawal transactions on the account. The primary member only may negotiate loans on the account. The entrance fee for this type of account is $1.00.
All Accounts Require Tax Number
Any eligible person or organization wishing to open an account with our credit union must provide us with a taxpayer identification number at the time the account is opened. This is in accordance with a Treasury Department requirement which became effective June 30, 1972.
For individuals, the taxpayer identification number is his social security number. All prospective members, regardless of age, must have a social security number before an account can be opened. For clubs and organizations, the taxpayer identification number is the Internal Revenue Service employer identification number.
Share withdrawals are normally made on demand. Although the bylaws do specify that up to 60 days notice may be required for such transactions, it is the Credit Union policy to expedite responses to withdrawal requests. Only in exceptional cases and in highly unusual circumstances would there be a delay beyond a day to comply with a request for withdrawal. In instances where there is an outstanding loan, the release of shares must have prior Loan Officer approval. No withdrawals will be allowed on an account if the loan is delinquent.
Dividends are computed annually. Dividends are paid on all accounts with $100.00 or more. Deposits made by the l0th of any month and held on deposit through the last day of the dividend period, will be eligible for a dividend. The amount is based on the number of months deposited times the rate declared by the board of directors.
We are one of the few community credit unions housed in our own building. We are continuously working toward becoming a self-sufficient community credit union. (7) Replace last paragraph with:
During our forty years of service, we have made over 10,000 loans for over $16,000,000.00. We welcome any and all questions regarding our ability to help people attain self-sufficiency. Our organization encourages anyone who is interested in learning more about this unique, not-for-profit cooperative to contact our office for additional information.