EXPANSION OF FIXED ASSETS固定资产扩张.docVIP

EXPANSION OF FIXED ASSETS FOR A CREDIT UNION In most instances the Department of Banking and Finance (Department) allows the credit union to invest in equipment to the extent necessary to conduct the daily affairs of the credit union, maintain the books and records thereof, and meet the convenience and needs of the membership. Generally, acquisition of major equipment items, such as computer facilities or major office renovations, should be completed after consultation with Department personnel. Current Department policy encourages warranted expansion, but only after such plans have been thoroughly investigated and justified by credit union management. Relocation or expansion of facilities provided by, or subsidized by, a sponsor may usually be effected without prior approval of the Department; however, the Department should be notified, by letter, of the credit union’s plans to expand or relocate. If the proposed fixed asset expansion would increase the percentage of fixed assets to total equity capital and reserves (excluding the Allowance for Loan Losses account) to 40% or greater, this application package should be completed and submitted to the Department. If the credit union’s proposed investment would be less than the 40% threshold noted above and the credit union qualifies for the expedited processing criteria noted below, the credit union may submit a letter form application containing the following information (NOTE: the letter form application would be submitted in lieu of the application package): Description of the fixed asset expansion plans that are contemplated; Indicate the total proposed amount of fixed asset investment and the percentage that this investment represents of total equity capital and reserves (excluding the Allowance for Loan Losses account); and Indicate the dollar amount of depreciation that would be recognized annual and the effective life being used to write off fixed assets. Indicate the extent of involvement by a director