Member Profit Sharing Program

It Pays To Be A Churchbridge Credit Union Member

Our Member Profit Sharing Program is one of the benefits of being a Churchbridge Credit Union member.  As a member you are entitled to share in the success of your Credit Union by receiving allocations of surplus earning based on your patronage.  The more business you have with us, the higher your allocations will be.

Credit Union Allocation:

Annual allocations may be made by the credit union by virtue of a resolution of the Board of Directors, based on the financial position of the Credit Union relative to any surplus earned by the Credit Union in its fiscal year of operation. It will not be necessary to allocate any or the entire Credit Union surplus to the member's Equity Account. The allocation shall be calculated using the year to date interest paid on Terms and Deposit Accounts, the year to date interest received on Loans and Lines of Credit and on Month End Service Charges on Chequing and Savings Accounts.

An allocation will not be paid on the following accounts:

• Accounts that have been closed prior to year end and no membership exists.
• Accounts that have been tendered where preferential rates and fees have already been provided by way of the tender process. 
• Where a member waives their allocation in return for a preferred rate on a loan or deposit.
• Loan accounts that are in arrears in excess of 90 days at any point in that given year. This will also exempt any other accounts for that account holder with similar ownership roles from receiving an allocation as well.
• For interest received on overdrafts.
• To any member who has caused a financial loss to the Credit Union through write-off.
• Registered Funds (RRSPs, RRIFs, RESPs), Leases, NISA Accounts,  CAIS Accounts, Mutual Funds, Segregated Funds,  Tax Free Savings Accounts, AgriInvest Accounts, Credential Accounts, US Dollar Accounts, Lawyers Trust Accounts, Participation Loans, Organization Accounts, Index Linked Deposits, etc.
• Any account where all the tax owners are not a member of the Credit Union.
• Retail Installment Agreements (Dealer Finance Program).

Manner of Payment:

Annually the Board of Directors will decide what portion of the allocation will be paid in cash and what portion will be credited to a Member's Equity Account. Estates, clubs, societies, and other community organizations will be paid 100% of their allocation via cheque or deposit to their chequing/savings account.

There will be no allocation if:

• The total allocation to the member is less than $5.00 and the primary account holder is over the age of 18.
• The total allocation to the member is less than $1.00 and the primary account holder is 18 years of age or younger.

The cash allocation will be paid as follows:

• Under $5 will remain in the member's equity account.
• Amounts between $5.00 and less than $10.00 will be credited to the member's chequing/savings account. However, if no valid chequing or savings account is available, the amount will remain in the member's equity account.
• Amounts of $10.00 and higher will be paid by cheque.
• Trust Accounts shall have the allocation credited to their respective accounts in all cases.
• Once a member's equity account reaches $25,000.00, any amount in excess of the $25,000.00 shall be paid directly to the member. Any member who, on December 22, 2016 has a balance of $15,000.00 in their member equity account shall be paid 100% of any further allocations above the $15,000.00 currently retained.
• Once a member reaches the age of 70, all of the equity in excess of the $10.00 Membership Share shall be paid directly to the member. 
• All accounts will be grouped together by the same tax owners; all calculations and balances retained in equity accounts will be based on these groups.
• Any cash portion issued to a member by cheque that is not cashed within three years of the date of issue will be cancelled and returned to the member's retained equity account. If at that time the retained equity account is closed and the owners are no longer members of the credit union, the funds will be treated as an unclaimed balance and be treated as such.

Ownership/Income Tax:

Funds on deposit in the Member's Equity Account shall be owned by the member but are subject to the withdrawal restrictions in order to protect reserves from being depleted in an uncontrolled manner. Member's allocations paid on Term Deposits and Deposit Accounts shall be included in T5s as provided to the member. Allocations paid on loan interest received and service charges shall be declared by the member and shall be their responsibility to report it in the proper manner on their tax returns.

If the credit union is unable to locate a member after a member has closed all deposit and loan accounts and the member has retained allocated equity, such equity will be transferred to retained earnings of the credit union.

Any member who causes a loss to the credit union by way of a collection action on delinquent loans, lines of credit, or overdrafts will relinquish all rights to their equity account balance, and the full amount of said equity will be retained by the credit union upon closing of the membership.

In the event of a spousal breakdown, or the closure of all joint accounts held by a group of members, the balance of any joint retained member equity balances will be split evenly among the joint owners of the account. This documentation must be provided within 30 days of the closure of all joint accounts.

Withdrawal Conditions:

• Immediate payment of the member's original $10.00 membership share.
• Members with an equity account balance of $500.00 or less will be paid our following the approval of management. 
• Members with an equity balance of greater than $500.00 will receive payment of their members equity account one year following the closure of their membership. All of these requests shall be submitted to the CEO, or their designate, for authorization of payment. 
• On completion of the request for withdrawal, no further allocations will be added to this account.
• In case of death of a member, bankruptcy, or dissolution of an organization or company, immediate payout of all equity will take place upon closing of the membership.

Transferability:

The member's equity account is non-assignable and non-transferable.