Indiana Credit Union Foundation - News -August 22, 2005

The Indiana Credit Union Foundation (ICUF) was chartered to provide assistance to all Indiana credit unions through education and credit union development as well as disaster relief when needed. This means helping fund education scholarships for credit union staff and volunteers, local credit union initiatives in consumer financial education and outreach programs to low to moderate-income member groups, as well as programs to strengthen small credit unions and to assist credit unions impacted by disasters. To date in excess of $49,000 in scholarships has been awarded. Additionally, disaster relief grants totaling more than $35,000 have been awarded to assist credit unions in Indiana, Oklahoma, California, Florida and internationally affected by flooding, wild fires, tornadoes, hurricanes and tsunamis.

COMMUNITY INVESTMENT FUND
How can investments you already make help support the funding of national and local credit union education and development issues? Through a Community Investment Fund (CIF) investment available through the Corporate Credit Union Network. A brochure from the National Credit Union Foundation with details about the CIF accounts has been included with this mailing.

This is the easiest way for credit unions to provide ongoing support to the Foundation, and assures the Foundation will have the resources to fulfill its mission. There is no special accounting required for these investments.

The Foundation Board has established recognition levels for credit unions participating in the CIF program. Credit unions that make CIF deposits prior to December 31, 2005 will be recognized for participating in the ICUF Annual Campaign based on the following chart:

Recognition Level	Deposit Amount	Investment Examples
Recognition Level	Deposit Amount	Assets $10,000,000	Assets $25,000,000	Assets $100,000,000
Cornerstone Society	.25% of assets up to $2 million	$25,000 or more	$62,500 or more	$250,000 or more
Leadership Society	.10% up to .25% of assets up to $1 million	Up to $24,999	Up to $62,499	Up to $249,999
Partnership Society	Up to .10% of assets	Up to $10,000	Up to $25,000	Up to $100,000

There are three CIF investment options to help fund the ICUF and the National Credit Union Foundation (NCUF).

1. A 90-day notice account where the dividend is split between the investing credit union (50%) and the NCUF and ICUF (50%), with a cap of 2% to the Foundations.

2. A three-year, fixed-rate certificate where the dividend is split between the investing credit union (50%) and the NCUF and ICUF (50%), with a cap of 2% to the Foundations.

3. A five-year, fixed-rate certificate where the dividend is split between the investing credit union (50%) and the NCUF and ICUF (50%), with a cap of 2% to the Foundations.

All dividends in excess of 2% are returned to the investing credit union. With the increase in interest rates more of the dividend from the investment goes back to the credit union. Mid-States takes no spread or fees to administer the program so the highest possible amount can go to credit union initiatives.

Sixteen credit unions are currently participating, having invested a total of $5,814,000. We have set a goal of $8 million in CIF deposits by December 31, 2005.

Help support the credit union movement in Indiana. Call Mid-States Corporate at (800) 782 – 2431, ext. 41 and ask to make a CIF investment, or complete the enclosed form and fax or mail it to Mid-States Corporate. Remember: all dividends will automatically be credited directly to your Mid-States account as well as the principle at maturity. If you wish to make a CIF investment through another corporate, simply contact that corporate’s investment department. For further information regarding CIF initiatives, please contact Joe Guilfoy at the Indiana Credit Union League, (317) 594-5313 or (800) 285-5300, ext. 5313.

Investment Examples