Open-end lines of credit, guaranteed lines of credit, term and CLF loans, loan participation program, certificate funding program and letters of credit

Southwest Corporate’s credit products are designed to help credit unions maintain funds when liquidity is tight due to unexpected loan demand, high share withdrawals, and seasonal outflows. They can also help credit unions meet asset/liability management goals and strategies. Southwest Corporate offers competitive rates and a variety of products to satisfy each credit union's unique situation.

At Southwest Corporate, a simplified application system speeds the processing of loan requests to provide answers in hours, not days. No penalties are assessed if a loan advance on a settlement line of credit is needed to cover overnight settlements. This automatic loan advance process eliminates guesswork and limits the credit union's interest expense. Most loan products at Southwest Corporate require collateralization. The collateral may be a general pledge of credit union assets or a specific pledge of collateral. Specific collateral that is generally acceptable to Southwest Corporate is:

• Share certificates or shares on deposit with Southwest Corporate
• Acceptable investment securities held in safekeeping with Southwest Corporate
• Member auto loan portfolio, mortgage loan portfolio, or government guaranteed student loan portfolio

For members that do not participate in the Members' Capital Account Fund (MCA), or that have given notice of intent to withdraw the MCA, a $200.00 application fee is required for each new term loan or line of credit or an increase in an existing line of credit. In addition, an annual renewal fee of $100.00 is required to maintain each line of credit.

A member may request an Open-End Line of Credit or other loan product from Southwest Corporate by providing the following forms and financial information:

• Completed Southwest Corporate Line of Credit/Loan Application
• Most current NCUA 5300 Call Report or internally prepared financial statements which include a balance sheet, income statement, schedule of delinquent loans and year-to-date loan charge-offs and recoveries
• A copy of the credit union's most recent Supervisory Committee, CPA or league prepared audit report (if requested by Southwest Corporate's Loan Department)
• A detailed listing of collateral, if required
• Other financial documents or information as required
• Once approved, the line of credit or term loan becomes effective upon receipt of the properly executed loan documents

Southwest Corporate offers both “settlement-related” lines of credit and a self-managed “non-settlement” credit line. The two “settlement-related" lines of credit are the Performance Settlement Line of Credit and the Standard Settlement Line of Credit.

The self-managed Advantage Line of Credit is not related to settlement activity and does not provide automatic loan advances that may be needed to cover settlement transactions. This line of credit is the most cost effective LOC with the lowest interest rate Southwest Corporate offers. A member credit union may obtain loan advances against this line of credit exclusively through the TranZact system.

Contact Southwest Corporate's Loan Department for more detailed information and assistance in solving your credit union's borrowing needs. Whatever your liquidity needs may be, Southwest Corporate is ready to be of service.

For a list of other loan products, click here
To download a loan application, click here
To see a list of Frequently Asked Questions about Southwest Corporate lending, click here.
To see a list of Frequently Asked Questions about Southwest Corporate's loan participations, click here.
For more information about Southwest Corporate's lending services, email lending@swcorp.org or call 800.442.5763