Types of Loans

Southeast Corporate members have access to a variety of competitive loan options. In addition we offer flexibility in structuring loans to fit your credit unions specific liquidity needs.

Settlement Loan

When you need overdraft protection Southeast’s settlement loans provide it, in the event your credit union has insufficient funds to cover daily settlement. This variable rate loan is often an overnight loan, but has a maximum maturity of 12 months. Because this loan type was created to provide overdraft protection, it bears Southeast Corporate's highest loan rate.

Demand Loan

Demand loans can help credit unions facing a temporary liquidity shortfall. This loan is created at the "demand" of your credit union and is a variable rate loan available to members that maintain a current line of credit with Southeast Corporate. Drawn against an existing line of credit and bearing a lower interest variable-rate than the settlement loan, the demand loan enables members to decrease borrowing costs and effectively manage their liquidity position. Maximum maturity is 12 months.

Term Loan

Southeast’s term loans offer flexibility in interest rates and maturity choices. These loans are closed-end loans designed for the short or intermediate-term funding needs of your credit union and are typically made for a specific purpose. The loan can either be set with a fixed or variable interest rate with a maximum maturity up to 36 months. Once the type of interest rate and maturity characteristics has been determined for the loan, Southeast Corporate will price the loan to provide your credit union with a competitive interest rate. Your line of credit will be reduced by the amount of any outstanding term loans. Term loans are subject to market based, pre-payment penalties if paid off prior to maturity.

Collateralized Loan

To reduce borrowing costs and avoid impacting your credit union’s line of credit you may want to consider a collateralized loan. Collateralized loans give members the flexibility to utilize several different sources of collateral to satisfy liquidity needs without accessing their established line of credit. Members can pledge Southeast Corporate share certificates, utilize securities maintained in Southeast Corporate’s safekeeping program or secure the loan with their own credit union’s loan portfolios. The loan amount available will be based on the type of collateral pledged with minimum margin requirements established for each collateral class. Members can choose a fixed or variable interest rate. You can determine the maturity of the loan, with the maximum maturity not to exceed ten years.

Reverse Repurchase Loan

Through a reverse repurchase loan, a credit union may sell a security with the simultaneous agreement to repurchase the same security on a certain date in the future at a predetermined price. Ownership of a security involved in a reverse repurchase transaction does not change. This assures peace of mind to your credit union that it is still entitled to all principal and interest payments on payment dates. Maturity terms and rates are determined at the time the repurchase agreement is entered. Reverse repurchase transactions are not applied against your credit union's line of credit. This transaction is available to members participating in Southeast’s securities safekeeping and reverse repurchase programs. Terms may vary based on the security used as collateral.

Central Liquidity Facility (CLF)

Additional liquidity is available through the CLF. Membership in Southeast Corporate makes your credit union automatically eligible to receive benefits from the CLF without having to fund the agency directly. As a member of the Central Liquidity Facility, Southeast Corporate can offer CLF loans in certain circumstances. The CLF loan enables Southeast to continue providing necessary liquidity to credit unions when funds are not available from traditional sources.