Loans

Central Liquidity Facility Loans

Central Liquidity Facility (CLF) Loans can be initiated for members who experience short-term, seasonal, or protracted difficulties. Mid-Atlantic Corporate acts as the CLF agent for all members, unless a credit union chooses to join the CLF directly. CLF Loans must be secured by a first priority security interest in collateral equal to 110 percent of the outstanding loan balance. Funds may not be used to expand a credit union’s portfolio. These loans have fixed rates with terms and conditions mandated by the CLF. Accrued interest is collected monthly or when the loan matures. This is determined by the CLF. Loan processing is independent of Mid-Atlantic Corporate, so funds may not be available the same day the request is made.

Commercial Loans

Mid-Atlantic Corporate offers commercial real estate loans to its members to purchase or construct an office building, or to buy undeveloped land for a future office site. Mid-Atlantic Corporate will finance the purchase of a main office or branch building provided the property is considered real property, and is zoned for commercial use only.

Additionally, Mid-Atlantic Corporate will finance the equity interest for the construction of a main office or branch office. The funds will be disbursed through pre-approved periodic draws, based on on-site written inspections from a commercial appraiser. Through Mid-Atlantic Corporate, funds for financing the purchase or construction of a new building cannot exceed allowable regulatory limits. This also applies to undeveloped commercial land.

Letters of Credit

Mid-Atlantic Corporate offers letters of credit to guarantee a credit union's financial obligation or contractual agreement with a third party. Irrevocable letters of credit may be issued for site improvement requests, to implement the sale of loan assets to a third party, and for other reasons. VISA letters of credit may be extended to member credit unions requesting to partner with VISA USA Inc., when requested by VISA.

Overdraft (Settlement) Loans

The Overdraft (Settlement) Loan is advanced automatically at the end of a business day whenever a credit union has insufficient funds in a share account to cover settlement clearings. The interest rate varies daily. This loan type is repaid or paid down daily from available funds in a credit union's Transaction Account.

Revolving Credit Loans

This loan product was designed to assist in managing short-term cash and liquidity needs. In most cases, funds are available within one hour. The lending rate varies daily. Accrued interest is paid monthly, unless the loan or interest is paid off.

Loan Servicing

Mid-Atlantic Corporate offers loan servicing for credit union member business lending. This service offers:

• Secured Online Access — Credit unions have secured 24/7 online access to their loan portfolio and other pertinent information. Loan information is updated daily. Eighteen months of loan payment history is accessible.
• Payment Processing — The payment-processing feature offers Lockbox payment processing, processing of payments received at your credit union, and payment posting to match your member's automatic payment. Credit unions receive daily notification of payments received and next business day availability of payments received.
• Member Billing — The credit union's name and address appears on all billing statements. Borrowers can be billed on a monthly, bi-weekly, quarterly, or semi-annual basis and at maturity. We also generate delinquency notifications for all co-borrowers and guarantors.
• Loans — We service several different types of loans including: lines of credit, commercial mortgages, term loans, and letters of credit. Mid-Atlantic Corporate services fixed rate loans and adjustable rate loans with multiple indexes. Moreover, we handle mailing rate change notifications to the borrower and have the capability to handle multiple accruals.
• Participation Loans — Mid-Atlantic Corporate's Loan Servicing can handle loans with multiple participants, participants with various interest rates and various purchased percentages, and payment processing for participants.
• Reporting — Detailed monthly and customized reports are provided. Mid-Atlantic Corporate's Loan Servicing will generate 1098s & 1099-INTs, track UCC expirations and recognize co-borrow/guarantor relationships across the portfolio.

Term Loans

Term Loans are available to fund short or long-term liquidity needs with flexible maturities ranging from two days to fifteen years. Credit unions can choose from competitive fixed rates based on market conditions. Proceeds may be available within one hour of a request. Collateral from the Revolving Credit Loan may be used to secure a term loan, thus eliminating the need to tie-up additional liquidity.