Flag Flown in Iraq Now Flies Over CUNA Mutual Campus Lt

a publication of the Idaho credit union league
Gem
Gem
Flag Flown in Iraq Now Flies Over
CUNA Mutual Campus
L
t. Col. Thomas Heyden’s gift to company leaders became a tribute to past
and present employees serving in the military during a recent flag-raising ceremony
on CUNA Mutual Group’s Credit Union
Center Campus in Madison, WI.
Heyden, a CMG employee and Army Reservist currently serving in Iraq as a senior
combat advisor to the Iraqi Army, sent a
U.S. flag that had flown at Camp Adder in
Iraq on June 12, during Operation Iraqui
Freedom. In recognition of service by
Heyden and others, the flag was raised at
the company’s Madison headquarters.
Heyden is a senior sales executive for
CMG who works out of Winston-Salem, NC. He will complete his deployment in December.
Members of the UW-Madison ROTC Badger Battalion raised the flag, which was presented by Bob
Trunzo, executive vice president and chief operating officer, CUNA Mutual.
September 2010
“It’s an honor and privilege to display this flag on the CUNA Mutual campus,” Trunzo told a small
gathering at the ceremony. “We owe a debt of gratitude to Lt. Col. Heyden and many others at
CUNA Mutual, past and present, who have made tremendous sacrifices in order to preserve our many
freedoms.” CUNA Mutual has 111 current employees who are reservists or retired military. 
Inside
Legally Speaking........................2
Public Service Campaign.......3
State Legislators......................3
Extended Access......................3
CUs in the News..............4 & 5
CU Essentials Workshop......6
WCMS Students.......................6
Smarter Marketing.................7
O
n October 21, credit union members worldwide
will join together to celebrate International Credit
Union Day. Do you remember why you chose a credit
union to be your financial services provider? It may be
among the reasons shared by the 186 million people in 97
countries who have also chosen credit unions, but it most
likely has to do with the common philosophy of people
helping people.
This year’s theme celebrates the advantages of credit union
membership. Value, trust, and service are just some of the
many benefits of being a credit union member. 
With your members, volunteers, and staff — Celebrate the Day!
Promote the credit union difference
conducted by J.D. Power and Associates
that found 38% of all new car purchases
involved negative equity.
by Alan Cameron
League President/CEO
Despite the economic slowdown, consumers
still want and need to buy new cars and credit unions want to help them by financing the
purchase. Unfortunately, the price of those
new cars continues to go up faster than the
rate of inflation and the value of used cars
continues to go down. For many consumers
the loan balance secured by their vehicle does
not go down as fast as the value does. The result for these consumers is “negative equity.”
They owe more than their car is worth.
Most consumers say they pay off loans used
to purchase a vehicle before they trade that
vehicle in on a new one. But, according
to the results of a poll recently conducted
by Edmunds.com, 26% of consumers said
that they think negative equity is just a part
of buying a new car. Another 19% said
they had traded in a vehicle with negative
equity but did not plan on doing so again.
This closely correlates with an earlier study
This situation is concerning for credit
unions that need to decide how to underwrite such loans. Given that such a large
part of the new car market involves negative equity, it is likely credit unions will be
asked to wrap at least a portion of it into
the new car loan. An important consideration in deciding whether to allow this
or not is the effect of bankruptcy on these
transactions.
cured portions. In other words, the debtor
proposed that the part of the debt that was
the negative equity in her trade-in should not
be considered part of the “purchase-money”
and therefore was not part of the purchasemoney security interest protected from
cramdown by Section 1325(a).
The term “purchase-money security interest”
is not defined in the bankruptcy code. Rather, the court looked to the UCC for a definition. Essentially, it means the security interest
afforded to one financing all or part of the
purchase price of goods. Recognizing this,
the 9th Circuit decided that it had to deterWhen Congress enacted the Bankruptcy
mine what the meaning of “price” included.
Abuse Prevention and
In the UCC, price includes
Consumer Protection
the “value given to enable”
Act of 2005, it included
one to purchase goods. This
a provision intended to
can include a wide variety of
limit the effect of a debtor’s
expenses such as taxes, finance
cramdown power on motor
Given that such a charges, freight, storage,
vehicle loans. The last paralarge part of the new and administrative charges.
graph of Section 1325(a)
car market involves AmeriCredit argued that the
was added to forbid the use
negative equity was simply an
of the cramdown power to
negative equity, it is expense incurred in connecreduce a purchase-money
likely credit unions tion with the debtor acquiring
security interest if the debt
rights in the collateral and
was incurred within 910
will be asked to wrap therefore should be considered
days before the bankruptcy
at least a portion to be part of the price.
and the security was a moof it into the new Unfortunately, the 9th Circuit
tor vehicle acquired for the
debtor’s personal use.
determined that the negative
car loan.
equity was not an expense but
This is all well and good if
an antecedent debt paid by
the definition of “purchaseAmeriCredit. To the court,
money security interest”
it was a form of refinanced
includes negative equity. In
loan; the substitution of a
at least half of the federal circuit courts of
new liability for an old one. In their view the
appeal that have considered this issue, the
negative equity was not sufficiently connectdecision has been that it does. The Ninth
ed to the purchase of the vehicle to establish
Circuit Court of Appeals only recently
a purchase-money security interest.
considered this issue and, not surprisingly,
it decided to take another path.
This decision applies in the bankruptcy
courts in Idaho so it is imperative that Idaho
In AmeriCredit Financial Services, Inc. v.
credit unions take it into account in structurPenrod, the finance company purchased
ing their loan policies, especially as it relates
an installment sales contract from an auto
to indirect lending. Should a credit union
dealer. The dealer had wrapped over $7,000
decide that it will finance more than 100%
in negative equity into the sales price to enof the value of the vehicle, it should carefully
able the debtor to purchase a Ford Taurus.
consider the potential effect on those loans
523 days after the purchase, the debtor
should the debtor elect to seek protection
filed for Chapter 13 and sought to split the
under Chapter 13. 
debt on the vehicle into secured and unse-
“With the passage of Financial Reform legislation, your Idaho Credit Union League staff is remaining
vigilant in learning about and understanding the impact of the legislation on our credit unions. We
will track and report any accompanying rules and agencies that may be written or developed as a
result of the Act. Please read your upcoming Gem newsletters for information.”
NCUA to Implement Credit Union Campaign with Suze Orman
NCUA’s Office of Public and Congressional Affairs
gained $1.7 million to implement a major consumer education campaign featuring a nationally recognized financial expert. The initiative will emphasize
the benefits of credit unions’ federal deposit insurance protection. NCUA will initiate a public service
campaign through TV, radio, print, and companion
ads designed to enhance and strengthen consumer
confidence in the nation’s federally insured credit union system.
With a plan to feature CNBC’s personal finance expert Suze Orman
as spokesperson, the campaign will reassure consumer their money
is safe in federally insured credit unions. NCUA plans to film both
a 30-second and 60-second TV ad to remind consumers of that
important message. The $1.7 million budget will cover production
and placement of the ads. The campaign will raise the visibility of
all federally insured credit unions and reinforce the safety of the National Credit Union Share Insurance Fund (NCUSIF) to consumers
across America. 
Idaho Represented at National Conference of State Legislators
Val Brooks joined other credit union league staffers from across the
country to help CUNA State Affairs “man” the Credit Union National Association booth at the National Conference of State Legislators in Louisville, KY in late July. State legislators from around the
country came together to learn about and exchange many ideas.
At the CUNA booth this year, there was something for everyone.
Giveaways included financial education for the very young and
teenagers. There were three special events at the booth, including a
meet and greet with 1960’s Heisman Trophy winner, Paul Hornung;
a taste of Kentucky with miniature mint juleps; and Kentucky bourbon balls — rich chocolate & creamy bourbon flavor.
A highlight of the event each year is “State Night” during which
legislators from each state meet with representatives for dinner or a reception. Val joined another Idaho advocate, Andrea Evans from CCA,
Senator John Goedde (R) District 4 and Senator and Mrs. Denton
Darrington (R) District 27 for dinner. Val said that it is “always a
pleasure to visit with legislators from Idaho. We have a lot of things in
common and I enjoy hearing about their legislative concerns and their
families and the opportunity to get to know them better. The legislators, in turn, are very interested in hearing about credit unions.” 
Senator Denton Darrington (on right) said, “It was so nice to have had the
opportunity to meet Paul Hornung at the CUNA booth. He is certainly an athlete
with many accomplishments and an interesting fellow. I appreciate the Credit
Union National Association and the Idaho Credit Union League participating at
the NCSL trade show — businesses and associations communicating with state
legislators at this conference is educational to legislators and business alike.”
Give Members Extended Access with CO-OP Member Center
Through CU Services Network
There has never been a better time for credit unions to consider
implementing the CO-OP Member Center, offered through CU
Service Network (CUSN). CO-OP Member Center is your credit
union’s 24/7/363 call center solution. With the recent flooding in
Nashville, tornadoes striking throughout the U.S., and hurricane
season approaching, credit unions need to consider emergency call
center options. CO-OP Member Center brings extended access and
convenience to members through comprehensive call center capabilities. With two available service options, credit unions can choose one
or both to best fit member needs.
• Credit unions see higher lending volumes and more cross-sales
revenue
• Quick and efficient lending services include real-time decisions
and member transactions
Next Generation Network participants can seamlessly plug into
CO-OP Member Center by leveraging their existing connection.
Through the Next Generation Network, credit unions can also give
members multiple touch points through a range of cutting-edge
products and services, including:
• CO-OP Fast Branch kiosks
• CO-OP Mobile (mobile banking)
• CO-OP My Deposit (remote deposit)
• CO-OP Shared Branching
Member Services
• Gives members round-the-clock personalized attention and access
without overextending the credit union’s own system
• Helps solve call center capacity dilemma by handling overflow calls
To learn more about CO-OP Member Center or the other prodand off-hour operations
ucts/services mentioned above, please contact CU Service Network
at 888-500-CUSN or email to: [email protected]. 
LoanLink Services
• Members can apply for loans anytime, from anywhere
Credit Unions in the News. . .
 During the August recess, US Senator Mike Crapo
from Idaho met with local credit union professionals,
volunteers, and members at Public Employees CU in
Coeur d’Alene. The Senator listened to concerns about
the impact for consumers and financial institutions that
the recently passed Financial Reform Act with the Interchange Amendment will bring about. He also addressed
Member Business Lending and how increasing member
business lending could help small business in these challenging economic times.
Representatives from Public Employees CU, Spokane Teacher’s CU, Global CU, Numerica CU, and the Idaho Credit Union League
were present during the Senator’s visit.
Before leaving the credit union, Senator Crapo took a moment in the CU foyer to look at the tribute to the service men and women from
Public Employees CU. The bulletin board has pictures of military personnel serving now and in the past who also belong to the credit
A brand new
branch of Kamiah
Community CU
opened in Kooskia in
July. Kooskia Mayor
Charlotte Schillings
lent a hand to board
chair Doug Warrington cutting the
ribbon. Board, staff,
and members, along
with locals who had
a hand in the design
and construction of the building and Idaho Credit Union League staff members,
helped to celebrate by consuming lots of
hot dogs and other goodies. Uninvited,
but also welcomed guests, included a doe
and her twin fawns.
Idaho State Representatives
Liz Chavez and John Rusche,
along with area County
Commissioners Doug Zinner,
Ron Whittman, and Pete
Gertonson got drenched at the Lewis Clark CU Summer Fun Fundraiser to raise
money for Credit Unions for Kids. Combined with the Red Neck Raffle, the credit
union was able to raise $8,700 with help from CO-OP Financial Network.
More than 4,000 Beehive FCU members, staff, and community members took part in the credit union’s annual
picnic — this year celebrating 70 years of service to members. Governor Butch Otter and First Lady Lori Otter
joined the festivities. Top middle photo includes Idaho’s First Family greeting Beehive members, Representative Dell
Raybould and his wife Vera. Top right photo shows CEO Shane Berger and Beehive’s oldest founding members
Eldred Stevens, 97. 
The 11th Annual Idadiv Children’s Miracle Network Golf Tournament held at
Ridgecrest Golf Course in Nampa was a magnificent success, raising more than
$20,000 for Credit Unions for kids, thanks to some matching funds from CO-OP
Financial Network. Earlier in the week Idadiv CU employees and friends of the CU
got up for an
early morning
“Where’s Larry”
segment on
KTVB Channel 7
to help promote
the event.
Pocatello
Chapter credit
unions held their
annual picnic in
August. Great
food, prizes, and
great company
was the reward
for getting there
early and staying
late. Members,
staff, board, and
families showed
up to celebrate
the credit union
movement in
Pocatello.
CU Essentials Workshop — October 14
Small to Mid-Market Solutions Module
The Idaho Credit Union League is sponsoring a day-long workshop
developed and coordinated by WesCorp to help small and midmarket credit unions implement best practice solutions to some of
the most crucial challenges they face today.
Under the banner “CU Essentials” the workshop features lessons
in using deposit and loan pricing tools for capital preservation and
restoration. It will also look at how credit unions can apply for grant
monies from the U.S. Treasury Department and learn about the
opportunities to receive secondary capital from organizations such
as the National Federation of Community Development Credit
Unions.
Featured speakers will cover a variety of topics. With more than 100
years’ aggregated experience working with credit unions, the list
includes: Dr. Randy Thompson (Thompson Consulting & Training,
Inc), Pablo DiFilipi (National Federation of Community Development Credit Unions), Jamie Chase and Chuck Cockburn (Credit
Union Strategic Planning), and Dietmar Huesch (WesCorp’s Financial Solutions Group).
“Demand for new loans is way down and credit unions, especially
the small and mid-sized ones, are struggling to maintain ROA,” said
Dietmar Huesch who will present the ALM portion of the workshop. He continued, “When everything is shrinking like that, you
need to develop some solid techniques to rebuild your earnings and
maintain efficiency while managing risk. The CU Essentials workshop is going to meet these challenges head-on by applying practical
solutions through case study examples.”
The workshop takes place on October 14 in the Boise area with
registration fees based on credit union asset size:
Asset Size
Registration Fee
Under $10M
$35
$10M - $50M
$50
$51M - $100M
$65
Greater than $100M
$80
For more information and a registration link, visit the League website at www.idahocul.org. 
Idaho Students at Western CUNA Management School 2010
Back Row, from left: Richard Starley, Icon CU; John Hapke,
ISU FCU; Josh Harris, Beehive FCU; Darrin Eberhardt, Lewis
Clark CU.
Next row from left: Ryan Drake, Valley Community CU;
Lenny Frings, Les Bois FCU; Nathaniel Rogers, Beehive FCU.
Next row from left: Wendy Edwards, Idadiv CU; Karey
Morgan, Les Bois FCU.
Front: Troy Sandvick, Potlatch No. 1 FCU.
Third-year students are wearing yellow shirts, second-year
students are in navy blue, and first -year students are in
light gray. 
Worth a Thousand Hugs & a Thousand Kisses for Pioneer FCU
Migrant Head Start students presented Pioneer FCU with a check worth one thousand kisses and one thousand hugs as their way of saying “Thank You” for providing
school supplies to eleven children transitioning into public school. PFCU employees
helped by donating money to purchase the supplies needed. “This is such a heartwarming experience to provide for these children. PFCU employees are very giving
and as a team, we were able to donate the supplies that were needed to give these
children a great start to public school,” stated Mary Morin, PFCU regional manager.
Migrant Seasonal Head Start is a non-profit organization that offers seasonal education programs to children of migrant and low income families and is designed to assist
the community in attaining education, civic, social and economic self-sufficiency. 
Idaho Credit Union League &
Affiliates
Meeting Your
Needs
Audit Services
Card Programs
Cash Account Reconciliation
Certification Programs
Chapter Relations
Compliance Guidance &
Research
Consulting
Credit Union Resource Library
Customized Training
Design Layout & Printing
Educational Opportunities
Employee Assistance Program
Fraud-Net
Human Resource Products &
Guidance
Indirect Lending
Member Segmentation & Smarter Marketing
from MemberCONNECT®
If you’re like many credit unions, you’ve probably decided that it make sense to make insurance available to
your members. After all, providing options that could
deliver better, more affordable coverage than they’re
likely to find elsewhere is a great way to enhance member service and build non-interest income.
But choosing the right provider can be tricky,
especially when you take a closer look at how they’ll
market the product. You want to make sure you
choose a partner that has the experience and expertise to maximize marketing opportunities.
MemberCONNECT® from CUNA Mutual delivers in two critical ways.
First, through segmentation. Using member information gleaned from its database of more than 50
million credit union members, CUNA Mutual has
developed a proprietary segmentation strategy that
divides members into 13 core segments based on
demographics, psychographics, and behaviors.
When your credit union participates in the Mem-
berCONNECT program, your member data will
be securely run through the CUNA model and
segmented into the 13 core groups. Your members
will receive only the insurance offers that match
their needs and purchasing patterns — and your
credit union will be perceived as a financial partner
who truly understands them and doesn’t waste their
time with off-target promotions.
The second way MemberCONNECT delivers is
through timely connections. MemberCONNECT
creates a member-focused marketing schedule. This
helps ensure members learn about the right products at
a time when they’re more likely to purchase, and aren’t
inundated with too-frequent or ill-timed mailings.
These important marketing differences can add up
to increased non-interest income, and strengthened
member relationships. Learn how segmentation and
timely connections through MemberCONNECT
can make a difference for your credit union’s insurance program. Contact your CUNA Mutual sales
executive today at 800-356-2644. 
Boise US Employees FCU Celebrates 75th Year
Insurance & Financial Services
IRA Services/Training
Legislative Protection
Liaison with Regulators
Major Equipment & Supplies
Marketing Services
Member Surveys
N.A.D.A. Appraisal Guides
Operations Manuals
Paperless Titles
Payroll Processing
Planning Sessions
Scholarships
Share Draft Services
Shared Branching
Telephone Recovery
Website Design
Youth Club
(Products and services
featured in this issue are
highlighted in bold text.)
Boise US Employees FCU’s board of directors and staff held an
open house on August 5th to celebrate their 75th Anniversary.
Members and visitors enjoyed delicious hot dogs and Polish
dogs, which were served along with refreshments. Boise US was
chartered in 1935 and currently serves 6000 members. Congratulations to one of Idaho’s oldest credit unions — still graciously
serving member needs after all these years.
The Idaho Credit Union League is dedicated to the success of credit unions in Idaho. We help foster success by representing, serving and promoting
credit unions locally and nationally. In addition, we strive to be the most effective advocate for Idaho’s credit unions.
Gem
Volume 49, No. 9
© 2010 Idaho Credit Union League. The
Gem is a monthly publication of the Idaho
Credit Union League, 2770 Vista Avenue,
Boise, ID 83705, Tel (208) 343-4841, Fax
(208) 343-4869, www.idahocul.org.
Annual subscriptions are included in
League dues.
Board Chair
Denay Moles, Idadiv CU
President
Alan D. Cameron
Editor
LaRaye O’Brien
POSTMASTER: Send address changes
to the Gem, P.O. Box 5158, Boise, Idaho
83705.
Awards & Certificates
Capital Educators FCU
Kristi Dugan
Katherine Hath
Olga Onishchuk
Clearwater CU
Glory Deniston
Icon CU
Mandy Wood
Idaho State University FCU
Cassie Harrington
Brandi Sanford
Latah FCU
Tricia Orr
Wendy Sandino
Pioneer FCU
Kara Vallard
Pocatello Teachers FCU
Michelle Bybee
Jamie Campion
Melanie DeLashmutt
Michelle Farris
Andrea Hedstrom
Chris Hiltbrand
Shawn Jones
Autumn Zellers
SEPTEMBER
1 Invest in America Webinar Does Your CU
Need More Non-Interest Income
C a l e n d a r
East Idaho CU
Paula Barreras
Member Services L2
Casey Barton
Savings Plus
Melanie Brush
CU Technology,
CU Accounting
Karen Challis
CU Sales
Kendra Garner
Advanced Lending
Bonnie Heileson
CU Security
Michael Klements
Ruby Award
Nancy Orme
Jackson Award
Tamara Peterson
CU Sales
Whitnee Shumway
Advanced Lending
Geraldine Spain
Consumer Lending
Mary Summers
Loan Officer
IDAHO CREDIT UNION PHILOSOPHY CERTIFICATIONS
1 Decedent Accounts QuickBite
8 Frontline Workshop: Robbery, Boise
9 Frontline Workshop: Robbery, Nampa
9 The Growing Roles of Market Segmentation
QuickBite
14 Innovations on Business Continuity QuickBite
14 Frontline Workshop: Robbery, Idaho Falls
15 Frontline Workshop: Robbery, Pocatello
16 Frontline Workshop: Robbery, Burley
22 Account Administration TeleCourse
22 Frontline Workshop: Robbery, Coeur d’Alene
23 Frontline Workshop: Robbery, Clarkston
29 Rethinking Your Current Business Development Tactics QuickBite
OCTOBER
6 Harassment for Supervisors Webinar
6 BSA for Frontline QuickBite
13 Conducting the 2010 ACH Audit Webcast
14 CU Essentials: Small to Mid-sized Solutions,
Meridian
14 Telephone Collections Tips QuickBite
19 Coaching & Performance Management
TeleCourse
21 Social Media & Your Media Mix Quickbite
-- See Complete Listing at www.Idahocul.org