As the fifth and final core organization to be created by the Dai Council for the Generation 10 Economic Development Plan, this credit union would serve as the primary financial institution for the Dai people to serve their banking needs, such as opening checking and savings accounts, offering unsecured and collateral-backed loans, providing affordable mortgages, and other business banking needs.
This project was slated last on the list of organizations to be created due to the significant capital needs that would be required for the successful launch of a credit union offering full-service financial offerings to grow, maintain, and safeguard the Dai economy and general population of the Uncompaghre Valley.
The credit union will partner with the National Credit Union Administration (NCUA) to insure deposit accounts as required by law and will follow the banking regulations of the Dai Council in addition to those of State, and Federal regulators. The credit union will require regular audits in order to satisfy reporting requirements of these regulators and to protect its members.
Since it is regulated under Decree Order 12 of the Dai Council concerning banking, the credit union will operate under the following guidelines and restrictions:
- Unsecured Loans
- Maximum Interest Rate: 12% per annum, compounded daily
- Maximum Monthly Payment Principle Payment: 1/12 of the total loan amount
- Guideline of Maximum Issuance Amount: monthly income of loan customer
- Secured Loans
- Maximum Interest Rate: 6% per annum, compounded daily
- Maximum Total Monthly Payment (Interest & Principle): 1/3 of the customer’s monthly income
- Guideline of Maximum Issuance Amount: 80% of the fair market value (FMV) of loan collateral
- The total monthly payment on residential mortgage property may not exceed local rental control maximums.
- Guideline of Maximum Issuance Amount (Residential Mortgage): $169,300 per property
- Both Checking and Savings accounts are allowed, but both accounts are required to operate as two classes of accounts:
- Maximum Deposit Amount for First Level Accounts: $5,000 per account
- Maximum Deposit Amount for Second Level Accounts: $250,000 per account
- For personal deposit accounts, married customers are eligible for a suite of three accounts:
- Each spouse is eligible for Checking and Savings accounts per individual.
- Married couples are also eligible for joint Checking and Savings accounts meant to serve as “House” accounts for the entire family.
Business customers include individuals engaged as sole proprietors or partnerships as well as entities operating under Trusts arrangements, limited liability companies (LLCs), limited partnerships (LPs), For-Profit Corporations, and Nonprofit Corporations:
- Maximum Amount of Individual Unincorporated Business Accounts: $3,000,000 (total of all account types)
- Maximum Amount of Entity Business Accounts: $3,000,000 per partner, or principle up to $30,000,000
- Guideline for financial institution collateralization of business accounts above $250,000 to protect funds.