Standard & Performance
Settlement Lines of Credit
Catalyst Corporate offers two options for a settlement line of credit to provide automatic liquidity coverage when it’s needed.
- The Standard Settlement Line of Credit is secured by a general pledge of credit union assets.
- The Performance Settlement Line of Credit is secured by a specific pledge of assets acceptable to Catalyst Corporate.
Features & Benefits:
- Liquidity is readily available when needed.
- Loan advances are automatic, requiring no action on the part of credit unions.
- Rates are attractive.
- Credit unions can easily obtain loan advances from either type of line in one of three ways:
- through Catalyst Corporate’s automated settlement sweep feature;
- by making a loan-to-share transfer in TranZact; or,
- by contacting the Member Services department.
- Loan advances are due 12 calendar months from the date of the individual advance. Automated notices of loan advance transactions are delivered to members the next business day.
- There are no limits on the number of loan advances a credit union may obtain, as long as the total credit line is not exceeded.
- There are no fees to establish a line of credit or obtain a loan advance.
- Credit unions can make loan payments online using TranZact or by contacting the Member Services department.
- Catalyst Corporate does not charge a higher interest rate for advances obtained through the automated settlement sweep.
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