NCCU loans must be secured by one or more of the following:

Member's signature (character)

No additional security is needed except the member's signature and good character.
The loan limit is $10,000 in excess of the member's Share savings.

Member's own Share savings, deposits, fixed deposits,  and Member Retirement Account

NCCU has the right to place a charge or lien upon the shares, deposits, fixed deposits
or MRA for any debt due by a member.  Permission must  be  granted to the member
to withdraw, if  the  withdrawal  will  reduce  the  shares  or deposits to  an  amount
below the amount pledged as security for the loan.

Co-maker

A co-maker loan is guaranteed by one or two members as security to the Society. If the member (maker) fails to pay, the co-maker is expected to pay.

• Co-makers must be members of the Society.
• The Co-maker/s financial commitment is carefully analyzed to ensure there is capacity to repay the loan in the event of default by the borrower.
• Co-makers are liable, jointly and severally, to the Credit Union
• Co-maker loans are limited to $15,000 above members' shares. 

            -Loans up to $7,500 require one co-maker

             -Loans over $7,500 and up to $15,000 require two co-makers

             two co-makers are required for loans with repayment periods exceeding four years

Guarantee Members

Loans may be guaranteed by members where tangible assets are being pledged. Liens will be placed on the member/guarantor's shares, deposits and a Certificate of Title.

Guarantee (by non-members)

Loans may be guaranted by non-members on condition that some tangible asset is pledged. Tangible assests include fixed deposits and Certificate of Title. Liens will be placed on these instruments.

Bill of Sale on Vehicles

A bill of sale is a legal document giving NCCU the legal right to repossess goods if the member defaults in loan payments. It is prepared by a lawyer and contains all necessary information and details about the item. The Bill of Sale is signed in the presence of the lawyer. All costs relating to preparation and execution are met by the member. Bills of Sale will be accepted on motor vehicles as follows:

• new vehicles 100%
• vehicles 1 - 3 years                    --  100%  of appraised value
• vehicles 4- 6 years                     --  75%  of appraised value
• vehicles 7 - 10 years                  --  65% of appraised value

Where an older vehicle is certified to be in good mechanical condition, the Bill of Sale will be taken on 55% of the appraised value of the vehicle.   

Certificate of Title (COT) to property 

Preferabky the COT should be registered in the name of the member requesting the loan.

• A COT can be accepted from another member as well as a non-member. A document assigning the title to NCCU must be provided.
• A caveat in favour of NCCU will be placed on all COTs. The cost must be met by the member and is usually included in the loan amount. View current fees for Caveats
• The borrower must provide a current valuation of the property registered by the COT. The valuation must be done by an evaluator approved by NCCU.
• If more than one person jointly owns the property, all parties named in the COT must agree for the document to be used as security.
• A standard letter for pledging of securities must be completed at NCCU and witnessed by a member of staff.
• Members receiving mortgage loans must pledge to NCCU the COT for the land on which they will be building. A Caveat will be placed on the Title.
• NCCU's Legal Department will process requests by members to include the names of spouses or other persons on certificates of titles in custody of the society. Member will pay a small fee. (See Vetting Fees below) 

Insurance Policy

Members can assign life insurance policies with a cash surrender value as security for loans. The insurance company must provide a statement of the current cash surrender value of the policy and the amount that can be assigned to NCCU. NCCU will then determine if the policy is acceptable.

Share Certificates

NCCU may accept Share certificates as security for loans. The par value of the shares will be used.

Note: Assignment of wage or salary is not regarded as security for a loan but as a
useful collection tool.

Processing of Certificates of Titles

• NCCU's in-house attorney processes all titles for land purchased with a NCCU loan
• Members can engage their personal attorney to process their title. NCCU will require interim security while the title is being processed.
• NCCU's attorney will vet the documents to ensure they are in order and the interests of the Society are protected. Fees for vetting the title must be met by the member. See vetting fees below.