Indiana United Methodist Loan Fund
Frequently Asked Questions
Will my investments fluctuate in value?
Certificates earn a fixed rate of interest for their term.
Savings accounts are subject to periodic change in interest rates. Click here to check rates.
Is the Loan Fund audited?
An annual audit is conducted by a CPA firm. An audit report is supplied to all investors.
When do investors receive their interest payments?
You can choose to receive interest payments either quarterly or annually, or to have interest reinvested annually.
Can I reinvest when my certificates mature?
Certificates will automatically renew unless you request a withdrawal. At maturity, you can add to your Certificate, make full and partial withdrawal, or change to a different maturity term.
Are faxes as good as originals for making changes or withdrawals?
Yes, faxes are fine as long as the signature matches the authorized signature that we have on file.
Grace
period on certificates maturing?
10 days
How often do the rates change?
The Loan Fund Board reviews the rates at each meeting. It is possible that the rates could change two to four times throughout the year, but the Loan Fund Board hopes to keep the rates as consistent as possible.
The Fed is raising the interest rates so we thought that you would be raising your LF certificate rates.
Our deposit interest rates are established by our Board of Directors when they meet every other month. At each meeting the Board reviews rates offered by a list of other financial institutions. It is our goal to offer rates higher than most other financial institutions. However, there is no attempt to have changes in our rates track changes in the Federal Discount Rate (which is the rate we read about changing).
Is the Loan Fund insured?
No, it is not insured. We are approved by the Indiana Securities Division to accept deposits but
NOT
as a bank. For that reason, we cannot be FDIC Insured.BUT
, to attempt to provide Assurance, we have performed a tremendous amount of research.We have researched 8 other UM conference-based loan funds, the UM Development Fund, and another denomination’s Loan Fund.
•
From that research, we found that these groups DID NOT have a single loss from default on a loan. There was one that was close. A conference-based loan fund had a loan with a church that closed. That conference made good on that loan.•
This is important since the money deposited is used for loans. The research shows that the loans should be very safe.How often do the rates change?
•
The Loan Fund Board reviews the rates at each meeting. It is possible that the rates could change two to four times throughout the year, but the Loan Fund Board hopes to keep the rates as consistent as possible.•
Remember, the rate issued on a Certificate remains the same for the full term of that Certificate.•
But, when the Savings rates are changed by the Board, that changes the rate paid on current Savings accounts as well as any new accounts.Why do I need an Offering Circular before I can make a deposit?
•
The Indiana Securities Division and the securities administrators of the other states where our offer of Savings Deposits and Certificates of Participation is exempt from registration require that we provide each potential depositor with a copy of the Offering Circular before the Loan Fund can accept a deposit from that person. We cannot accept a deposit from someone who has not received a copy of the Offering Circular.•
The Offering Circular is like a ‘Full Disclosure’ document that tells what we are about; why we take deposits; what we do with the deposits; what we offer in return for the deposits. It is intended to educate the potential depositor about the Loan Fund.Disclaimer: This is not an offer to sell our Savings Accounts and Certificates of Participation to you and we are not soliciting you to buy our Savings Accounts or Certificates of Participation. We will offer and sell our Savings Accounts and Certificates of Participation only in states where authorized. The offering is made solely by our Offering Circular.
- Updated 09/27/2007. Questions? Comments? Contact the webmaster
- 1001 N. Western Ave., Suite D, Marion, IN 46952
- Telephone: 765.664.2327 Fax: 765.664.2598 Toll Free: 866.669.2327