• Any information not contained in this document may be requested from the office during the hours of 8.30 a.m. to 2.00 p.m. from Monday to Friday of each week
• Policies contained in this document will be used by the Credit Committee to determine all loan applications..
• All loan application must be made on the current official UWI Credit Union Loan Application form.

2.1        Collateral

Fixed Deposits

Unit Trusts Shares

Co-makers

Cash Surrender Value on Life Insurance

First and Second Mortgages

Mortgage Bills of Sale

Shares

2.2          Emergencies

Death

Urgent Medical Treatment

Litigation

Natural Disasters

2.3          Small Business

A productive venture capable of sustaining itself and generating income and/or employment in the short to medium term (6 – 12 months)

i.  Loans shall be granted on the general condition of :

(a)           Character

(b)           Capital

(c)           Condition (economic and otherwise)

(d)           Collateral

(e)           Capacity

(f)             Cash Flow (monthly loan repayments to not exceed 50% of members' gross earnings

ii.     Members not employed by the University may be asked to provide either collateral or approved co-makers to cover the unsecured portion of the loan.

iii.    The total amount of a loan for which a member shall be eligible shall be twice the amount of his share capital, less any outstanding loan balance, subject to i above.

Loans shall be made for productive and provident purposes such as:

·               Housing/ Land Purchase

·               Education

·               Investment

·               Medical Treatment

·               Small Business

·               Legal Transactions

·               Household Amenities

·               Vehicle

·               Vacation/Travel

·               Ceremonial Expenses

·               Debt/Utilities

·               Any other purpose approved by the Board of Directors

The Credit Committee may request any or all of the following documents in determining a loan application:

Purpose	Document Required
Purchase of house and/or land	Valuation report Proof of up to date e.g. WASA/Land and Building Tax Offer for sale, and any other documentsrequired by the Credit Committee
House Renovations	Estimate of cost of repairs
Education	Letter of acceptance, estimate of costs
Medical Treatment	Letter from medical practitioner and/or institution, estimate of cost of treatment
Legal Transaction	Letter from Attorney or Judiciary stating costs
Used Vehicles	Up-to-date certified copy of ownership Valuation report Purchase agreement Letter of intent to sell free from encumbrances Pro Forma invoice (roll on/roll off, foreign Used)
Household Amenities	Pro Forma invoice, Job estimates
New Vehicle	Pro Forma invoice from dealer
Vehicle Repairs	Estimated cost of repairs
Vacation / Travel	Pro Forma invoice from travel agent
Small Business	Small Business Plan inclusive of Projected Actual Cash Flow Statement
Debt / Utilities	Full documentation in support of liability

Loans for the purchase of new vehicles shall not exceed ($150,000.00) and shall be subjected to the following:

7.1.1   The maximum period of repayment of such loans shall be (60) months.

7.1.2   The application must be accompanied by an invoice. The invoice must show:

·               Make, type, and model of vehicle

·               Colour of vehicle

·               Registration

·               Chassis and engine number

7.1.3   Members would be required to provide the following:

·               25% of shares unencumbered

·               Mortgage bill of sale with the Credit Union

·               Fully comprehensive insurance on the vehicle

7.1.4     The member shall complete and deposit with the Credit Union, a transfer of ownership form, obtained from the Licensing Authority, which shall be returned to the member on repayment of the loan.

7.1.5     A member shall not dispose of a vehicle under a Mortgage Bill of Sale with U.W.I. Credit Union, unless written consent is granted by the Credit Union.

7.1.6     A member shall bear all costs associated with the preparation of the Bill of Sale.

Loans for the purchase of used vehicles shall not exceed ($150,000.00) and shall be subjected to the following:

7.2.1   The maximum period of repayment of such loans shall be (60) months.

7.2.2   The application must be accompanied by an invoice. The invoice must show:

·  Make, type, and model of vehicle

· Colour of vehicle

·  Registration

·  Chassis and engine number

7.2.3   Members would be required to provide the following:

· 25% of shares unencumbered. Proof that the vehicle to be purchased is free from all encumbrances

·A letter of intention to sell by the owner and a Certified Copy of Ownership ·Aninspection pass from a certified inspection garage of roadworthiness

·Mortgage Bill of Sale with the Credit Union

· Fully comprehensive insurance on the vehicle

7.2.4     The member shall complete and deposit with the Credit Union, a transfer of ownership form, obtained from the Licensing Authority, which shall be returned to the member on repayment of the loan.

7.2.5     A member shall not dispose of a vehicle under a Mortgage Bill of Sale with U.W.I. Credit Union, unless written consent is granted by the Credit Union.

7.2.6     A member shall bear all costs associated with the preparation of the Bill of Sale.

8.1 Application for mortgages will normally be invited from January 31 of each year and applications will close on December 31 of the same year.

8.2 The Credit Union shall allocate funds annually for the purpose of mortgages. No mortgage shall exceed $750,000.

8.3      Loans shall be granted in the following priority:

·               First Time Owners

·              To build a house on land already owned by the applicant.(Land must be freehold or leasehold for a minimum of 75 years or leasehold with an option to renew)

·               To purchase house and land

·               To purchase land which must be freehold as described in 3.i. above.

·               House Already Owned by Applicant

·               To effect repairs to a maximum of $50,000.00

·               To carry out extension to a maximum of $75.000.00

8.4     Mortgage repayment period will be for a maximum period of ten (10) year

8.5     The following qualifications are necessary for a valid mortgage application:

·     Membership in the Credit Union for not less than one year with a regular saving pattern.

·    Shares equivalent to 20% of the Mortgage Loan must be free in the members’ share account as collateral for the loan.

8.6     The loan will be secured by the following:

·  Assignment of shares equivalent to 20% of the mortgage loan.

·   A first and/or second mortgage on the property. (Second mortgages shall qualify to a maximum of 80% of the valuation of the property)
·  Adequate Fire Insurance on the property assigned to the Credit Union.

8.7     The following documents are necessary for the purchase of house or land:

·                  Letter of offer of sale.

·                   Copy of rates and taxes receipt for the current year.

·                  Copy of Deed / Lease from Vendor.

·                   Copy of Agreement if a down payment has been made.

·                   Copy of Survey Plan/Cadastral Sheet.

·                   Location sketch.

·                   Recent Valuation report from a valuator approved by the Credit Union.

8.8     The following documents are necessary for the construction of a dwelling house:

·               Copy of Approved Building Plans.

·               Detailed Estimate from builder

·               Copy of Deed/Lease/Proof of Ownership

·               Copy of Rates and Taxes Receipt for current year ( water rates and land taxes)

·               Written permission from the parties concerned if the property is jointly owned.

·               Valuation report from a valuator approved by the Credit Union.

8.9     The following documents are necessary for major house repairs/extensions:

·               Proof of ownership of property.

·               Detailed Estimate signed by the contractor.

·               Copy of Rates and Taxes receipts.

·               Town and Country Approved Building Plan (Extension only)

8.10.   The Credit Union will issue a statement of Interest Payments on the Mortgage Loan for the purposes of Income Tax.

9.1      Loans shall be granted for small business ventures to a maximum of $75,000.00

9.2      20% of the value of the loan in the form of unencumbered shares shall be required as equity.

9.3      Security for small business loans shall be determined by the type of business and the total value of the loan.

9.4      A moratorium not exceeding three months may be granted on loan repayment to the principal. All interest payments must be scheduled in cash-flow projections.

9.5      The borrower will be required to submit quarterly reports in a stipulated format during the first year of business, and half yearly reports thereafter for the period of the loan. Site visits, shall be made by officers of the Credit Union on a routine basis.

9.6      Support services will be made available to the borrower at a negotiated fee.

9.7      Applicants will be required to attend small business courses as necessary.

9.8      The member shall bear all costs incurred in processing the loan.

The maximum repayment period shall not normally exceed 60 months except for mortgage loans.

11.1   Where the unsecured portion of a member's total loans exceeds $100,000.00 the member will be required to provide additional collateral in support of the amount in excess of the $100,000.00 limit.

11.2    In event of death loans are insured to a maximum of $100,000, in accordance with the CUNA Policy. Members whose loans exceed this sum must provide insurance coverage or collateral to cover the Credit Union’s exposure to the satisfaction of the Credit Committee. Members may provide their own coverage or this may be arranged through CUNA Mutual Insurance Company. Such insurance must be assigned to the Credit Union.

11.3    Fixed Deposits

11.3.1 Deposits with UWICU will qualify for lending at the rate of 1.5 :1 when assigned

11.3.2 Deposits with institutions other than UWICU will qualify for lending at the rate of 1:1 when assigned.

11.3.3 New members will become eligible to apply for a loan after a period of six months from the date of becoming a member (Reference Bye -Laws 4.2(b).)

11.3.4 Members who have transferred their accounts from another Credit Union shall maintain continuity of membership subject to the necessary administrative checks being performed for credit worthiness and the Board of Director’s approval.

15.1    Members will be required to contribute the recommended minimum per month to shares while repaying loans, in keeping with the Credit Union’s philosophy. This may be incorporated in the repayment schedule.