Appendix A to Part 231a - Operations of Defense Credit Unions

A. Staffing

1. Full services shall be provided by on-base credit unions that are staffed by:

a. A loan officer authorized to act for the credit committee;

b. An individual authorized to sign checks; and

c. A qualified financial counselor available to serve members during operating hours.

2. Exceptions to subsection A.1., above, may be approved by the DoD Component concerned in the case of newly organized credit unions.

3. When an on-base credit union can support only minimum staffing, one of the other positions required in subsection A.1., above, may be subsumed under the counselor duties.

4. Remote service locations at the same installation may be staffed with one person alone, provided that a direct courier or message service links them to the credit union's on-base main office.

5. All staffing shall fully comply with the spirit and intent of DoD equal employment opportunity policies and programs, in accordance with DoD Directive 1440.1.

6. Neither active duty military personnel nor DoD civilian employees may be detailed to duty or employment with an on-base credit union. However, off-duty DoD personnel may be employed by a credit union if approved by the installation commander following a determination that such employment will not interfere with the full performance of the individual's official duties.

B. Counseling

Members of Defense credit unions shall have access to free counseling service. Members (particularly youthful or inexperienced personnel and young married families) shall receive help in budgeting and solving financial problems. Military members in junior enlisted grades who apply for loans shall receive special attention.

C. Lending

1. In accordance with accepted credit union practice, lending policies are expected to be as liberal as possible while remaining consistent with the best interests of the overall credit union membership. Credit unions must strive to provide the best possible service to all members.

2. Defense credit unions evidencing a policy of discrimination in their loan services, as defined in DoD Directive 1000.11, are in violation of this Instruction. In resolving complaints of discrimination, the installation commander shall follow procedures specified in paragraph E.7.a. of this DoD Instruction 1000.10.

3. Defense credit unions shall conform to the Standards of Fairness principles set forth in DoD Directive 1344.9 before executing loan or credit agreements. Should an on-base credit union branch refer a prospective borrower to an off-base office of the same credit union, it shall advise the latter office that the Department of Defense requires compliance with the Standards of Fairness.

D. Hours of Operation

On-base credit unions may conduct operations during normal duty hours provided they do not disrupt the performance of official duties. Credit unions should set operating hours that meet the needs of all concerned. ATMs may be used to provide expanded service and operating hours.

E. Share Insurance

Credit unions serving on DoD installations must maintain adequate share insurance. Any share insurance that is at least equal to that required by the NCUA for Federal credit unions may be obtained through the NCUA, a State-sponsored insurance program, or a private insurance plan to satisfy this requirement. A credit union not maintaining share insurance shall be suspended from on-base operations.

F. Allotments of Pay

DoD personnel may use their allotment of pay privileges as authorized by DoD Directives 7330.1 and 1418.4 to establish sound credit and savings practices through Defense credit unions.

1. The credit union shall credit member accounts not later than the value date of the allotment check or electronic funds transfer.

2. Under no circumstances shall the initiation of an allotment of pay become a prerequisite for loan approval or disbursement to the credit union member. Allotments voluntarily consigned to a credit union shall continue at the option of the member.

G. Advertising

1. Advertising of on-base credit union services shall be in accordance with policies set forth in DoD Directive 1344.7.

2. Advertising in official Armed Forces newspapers and periodicals (DoD lnstruction 5120.4 and DoD Directive 5120.43) is prohibited, with the exception of inserts in the “Stars and Stripes” overseas.

3. DoD Instruction 5120.20 prevents use of the Armed Forces Radio and Television Service to promote a specific credit union.

4. An on-base credit union may use the unofficial section of that installation's daily bulletins, provided space is available, to inform DoD personnel of financial services and announce membership meetings, seminars, consumer information programs, and other matters of broad general interest. Announcement of free financial counseling services is encouraged. Such media may not be used for competitive or comparative advertising of, for example, specific interest rates on savings or loans.

5. An on-base Defense credit union may use that installation's information bulletin boards for announcements of membership meetings and promotional materials generally complementing the installation's financial counseling and thrift promotion programs. An on-base credit union may, with moderation, use that installation's message center services to distribute announcements for display on informational bulletin boards, provided this does not overburden the distribution system.

6. Installations, to include military exchange outlets or concessionaires, shall not permit the promotion of competing credit union relationships or the distribution of competitive literature from other credit unions at locations served by on-base credit unions. This does not prevent:

a. A credit union from using mail, telecommunications, or commercial advertising to serve its field of membership in another credit union's area, or

b. Exchange Services from distributing literature on affinity credit cards centrally acquired through competitive solicitation.

H. Overseas Operations

1. An overseas credit union branch or facility shall be limited to on-base operations. It shall confine its field of membership to individuals or organizations eligible by law or regulation to receive services and benefits from the installation, not prevented from receiving these services by intergovernmental agreement or host-country law.

2. Credit unions shall serve overseas only within a DoD-designated geographic franchise. However, any credit union may continue to serve its members stationed overseas by mail or telecommunications.

3. Any proposal for a new service must be coordinated with the appropriate Unified Commander and U.S. Chief of Diplomatic Mission or U.S. Embassy to ensure that it does not conflict with status of forces agreements or host-country law.

4. Cash Operations. a. Credit unions that operate full service branches, as defined in DoD Directive 1000.11, shall have U.S. currency and coin available for member transactions. In areas served by currency custody accounts, transactional U.S. currency and coins shall be made available from the servicing Military Banking Facility (MBF) with no direct or analysis charge to the credit union, provided settlement is made via a local MBF account or equivalent arrangements are made with the MBF.

b. Credit unions may purchase foreign currency from the servicing MBF at the bulk rate when used for internal vendor or payroll payments. The rate of exchange for sales to individuals must be no more favorable than that available from the MBF, in accordance with DoD Directive 7360.11.

c. Overseas credit unions operating in military payment certificate areas shall comply with DoD Directive 7360.5 and any DoD Component regulations implementing that issuance.

5. The operations of all federally-chartered Defense credit unions are subject to regulation by NCUA. Thus, NCUA Rules and Regulations, procedural forms, reports, and manuals directly apply to all Defense credit union branches and facilities operating overseas.

6. NCUA Rules and Regulations prohibit Federal credit unions from granting long-term (in excess of 15 years) first mortgage loans on any type of residence in any country outside the United States, its territories and possessions, or the Commonwealth of Puerto Rico.

7. Funds shall be deposited and invested in accordance with the authority -applicable to federal credit unions. Overseas Defense credit union branches and facilities shall deposit funds in accordance with instructions issued by the NCUA, giving full consideration to using the servicing MBFs.

8. Operation of overseas Defense credit union branches and facilities shall be reviewed by the NCUA during examination of the parent credit union or as the NCUA determines necessary.

I. Notification of Credit Unions

Each DoD Component shall ensure that every credit union with an office at its installations receives a copy of the document that implements this Instruction and DoD Directive 1000.11.