Credit union

A system, popular in North America, by which people with a common bond – membership of the same club, church, tenants’ association or trade union – can collaborate to put their savings (all the money that one has saved, especially in a bank) into a joint fund. Members can then apply to borrow from the fund and make repayments at an annual rate of interest of 12 per cent. The loans are usually short-term consumer loans, mainly for automobiles, household needs, medical debts, and emergencies. In less developed countries these loans are particularly important, constituting the only credit source for many people, and are used primarily for farm production and small business enterprise. Credit unions generally operate under government charter and supervision. At annual meetings, the members elect the directors, the credit committee, and the supervisory committee. The Credit Union Act 1979 included the following: 1. the minimum membership shall be 21 and the maximum 5000; 2. the maximum savings permitted per person to be 3000$; 3. the unions must be non-profit making and the purpose is to provide a service to its members.

1) What people can put their savings into a joint fund? 2) Can the members of credit unions apply to borrow from the fund? 3) What repayments can the members make? 4) What loans can the members take? 5) What do these loans constitute? 6) What are these loans used for? 7) What do credit unions operate under? 8) What do the members do at annual meetings? 9) What is said about credit unions in the Credit Union Act 1979?

II. Agree or disagree with the following statements.

1) People can cooperate together to put their savings into a joint fund. 2) The members of credit unions can appeal to borrow from the fund. 3) The members of credit unions make repayments at a monthly rate of interest of 15 per cent. 4) The loans are usually long-term consumer loans. 5) These loans are not for emergencies. 6) These loans compose the only credit source for many people. 7) These loans are used primarily for major concerns. 8) Credit unions generally operate under Magna Charter. 9) Credit unions do not operate under government supervision. 10) Credit unions must be uncommercial organizations. 11) Credit union is not obliged to provide a service to its members. 12) Fund is an amount of money that is collected and kept for a particular purpose. 13) A non-profitmaking organization uses the money it earns to help people. 14) Repayment is an amount of money that you pay back. 15) Tenant is someone who lives in a house, room etc and pays rent to the person who owns it. 16) Loan is an amount of money that you borrow from a bank etc. 17) Consumer is someone who buys and uses products and services. 18) Charter is a signed statement from a government, which allows an organization to officially exist and have special rights.

III. Translate the following words, phrases and statements from Russian into English.

Общая связь; избирать; учреждать; источник; предприятие; обычно; хартия; надзор; наблюдательный; разрешать; не ставящий себе целью извлечение прибыли; цель; членство; арендатор; союз; профсоюз; сотрудничать; сбережения; совместный; фонд; медицинский; обращаться; занимать; погашение; годовой; процентная ставка; ссуда; краткосрочный; потребительский; главным образом; домашнее хозяйство; непредвиденный случай; особенно; включать; обеспечить; долг; развивающиеся страны.

Кредитные союзы – это финансовые кооперативные организации, объединяющие частные лица по какому-либо общему признаку (например, лица наемного труда или проживающие в одной местности). Принципы деятельности кредитных союзов те же, что и у акционерных обществ, они предоставляют своим членам потребительский кредит с условием погашения его в рассрочку.

IV. Complete the following statements.

Credit union is … 2) People with a common bond are … 3) People can collaborate … 4) Members can apply … 5) Members make … 6) The loans are … 7) These loans constitute … 8) These loans are used … 9) Credit unions operate … 10) The members of credit unions elect … 11) The Credit Union Act included …

V. Scan through the text and answer the questions that follow.