August 12, 2010

To All Our Members and Potential Members:

As you know there has been a lot of negative press in the last couple of years about the banking business and about certain types of investments.   Many financial institutions have simply closed or been merged into others.  Because of this, deposits from many of those institutions and from investment firms have been coming into our credit union as fast as we can take them as members seek safety.  Unfortunately, the government has the investment rates so low, the credit union simply can not invest in anything that gives us a safe return with a decent rate.  As a matter of fact, we have money drawing as little as .10%.  Obviously we can not earn this type of rate and give you a rate that you deserve. Plus, the more money that flows in, the more diluted your return is since we only have so much money to divide among members as dividends.  

In an effort to keep your earnings up on share certificates, the Board of Directors has approved a temporary plan that should keep share certificate rates from diluting any further.  Beginning immediately, the credit union will temporarily suspend the issuing of NEW share certificates.  Members with existing share certificates as of this date can renew those certificates when they mature for any term that we offer.  However, we will not be able to add other funds to those certificates at this time.  New deposits can only go into share accounts or money market (SAM) accounts.  Hopefully this situation will not last long and we will be back to business as usual.  As a matter of fact, we hope that when things return to normal, we will be able to offer you a bonus rate to put your money into our share certificates.  In the meantime, remember, we make loans for all reasons.  Loans are one of our prime investments and the more loans we have, the better return you the saver gets.

Sincerely,

J. Michael Chaney

President/CEO

  FUNDS AVAILABILITY / Check Holds

Next Business Day Items That HOTFCU Does Not Place On Hold (1 DAY HOLD)

·         Cash               

·         On-us checks

·         Treasury, state, and  local government checks ***

·         U.S. Postal Money Orders***

·         Checks drawn on Federal Reserve Bank or Federal Home Loan Bank***

·         Cashier’s Checks***

***If we feel there is something suspicious about the check or money order, you will have the option of agreeing to let us put it in your share account until it clears, sending it for collection, or taking the check elsewhere.

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Second Business Day Items (All other checks) (must be available on the second business day after deposit) ($100 available next business day) (2 DAY HOLD):

·       All checks not listed as a Next Business Day Item and If not deposited in person

·         Treasury, state, and local government checks***

·         U.S. Postal Money Orders***

·         Checks drawn on Federal Reserve Bank or Federal Home Loan Bank***

·         Cashier’s Checks***

           ***If we feel there is something suspicious about the check or money order, you will have the option of agreeing to let us put it in your share account until it clears, sending it for collection, or taking the check elsewhere.

 Above are standard holds that we may place on your deposit. Below are reasons an extended hold of 5 business days may be added for a total hold of 7 business days or longer on new accounts.

Up to 9 days if the account is less than 30 days old. (HOTFCU chooses to have this option as a guideline for new accounts)	Member was overdrawn 6 or more days in the past 6 months.	Emergency has occurred such as computer failure.
The deposited item was previously returned.	Collectability is doubted.	Checks deposited exceed $5,000.  First $5,000 is still subject to standard availability anything over that can have extended hold.

Extended Hold Conditions:

If for any reason the collectability of a check(s) is in question, HOTFCU reserves the right to deposit the check(s) in your share account with a hold of up to 10 business days.

If funds not deposited in person are placed on hold or on an extended hold either when the deposit is made or after  the deposit is made, you will be given or sent a Notice of Hold.  Holds are calculated based on business days, not calendar days.