Security
Security is a tangible item of value that can be pledged, charged and mortgaged. It can be sold or otherwise converted to cash to repay a loan if the borrower defaults. Security may also be a guarantee of a member to stand good for another's debt.

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 savings/deposits. Some other conditions apply. 

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

NCCU has the right to place a charge or lien upon the savings,  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  savings/deposits to  an  amount
below the amount pledged as security for the loan.

Savings at Other Institutions:

Members savings and deposits at other financial institutions can accepted at securities for a loan as authorized  by the member.  A lien will be placed on  amounts pledged.

Co-maker

A co-maker loan is guaranteed by one or two members who are not themselves the loan applicants.   If the member (maker) fails to pay, the co-maker is expected to pay.

  • Co-makers must be members of the Society.
  •  Co-maker/s should demonstrate the ability to repay .
  • Co-makers are liable, jointly and severally, to the Credit Union
  • Co-maker loans are limited to $15,000 above members' savings/deposits
  • The co-maker's account cannot be closed or the standing order cancelled if the loans signed are still outstanding.

Loans up to $15,000 above members' savings and deposits require one  co-maker.

Co-maker loans will be limited to a period of 8 years.

Guarantee Members

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

Guarantee (by non-members)

Loans may be guaranted by non-members on condition that some tangible asset is pledged. Tangible assets 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 charge on moveable property eg a vehicle, equipment. It is a legal document giving NCCU the  right to repossess the goods if the member defaults on loan payments. 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.   

The vehicle must be valued by an NCCU recognised appraiser and be comprehensively insured for the duration of the loan.

Certificate of Title (COT) to property 

Preferably 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 noted on all COTs. The cost must be met by the member and is usually included in the loan amount. View  Caveat fees below.
  • 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.
  • COT pledge forms which are completed overseas, are to be durly notarized int he country of origin
  • A Legal Mortgage will be placed on a COT pledged as collateral where the borrower resides overseas or is considered to be of higher risk.

See 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.

Legal fees

LEGAL FEES

    Legal Document

    Fees and Costs
    Bills of Sale - Preparation

    $150 for loans up to $10,000 and

    2% of loans over $10,000

    Bills of Sale - Discharge $250
    Transfer Fees (property)
    • Government Fees 7.5% of property value or selling price whichever is higher
    •         -4 % - Stamp Duty
              -1 % - Assurance Fund
              -2.5% - Judicial Fee

    • Solicitor's Fee 3 % of property value
    Vendor Fee for Transfer of property Seller pays 2.5% to government

     

    Legal Document

    Fees and Costs
    Transmission Fees(where property is registered on deceased person's name)
    •  Government Fees- 2% of property value

            -1% Judicial fee
            -1% Assurance fee
            $7.50 stamp duty

    Caveat on Certificate of Title -Preparation

    $150 for properties valued up to $20,000,


    $350 for properties valued in excess of $20,000

    Removal of Caveat NCCU Caveat $150; Bank Caveat: $160 + Stamps of $7.50
    Include other names on Title Solicitor's fee 1.5% of property value
     

    All solicitor's fees are subject to 15% VAT payable to the government 

    Fees to be paid by the purchaser can be charged to the loan account.
    The vendor fee is normally deducted from the amount owed to them.

Vetting Fees

VETTING FEES


Activity Cost
Transfer of Certificate of Title 50% of Solicitor's Fee
Bill of Sale 50% of Solicitor's Fee
Caveat 25% of Solicitor's Fee

Vetting fees can be charged to the loan accounts

All fees are subject to 15% V.A.T.