As we have alluded to previously, we carry out work for credit unions throughout Ireland. One of the products and services which Pierse Fitzgibbon has developed is one which allows for secured lending on the part of credit unions. This may come as a surprise to many of you as it would not necessarily be common knowledge that credit unions engage insecured lending.
Recent Developments
You may have read recently that credit unions are also entering the area of agri lending and this has been highlighted in a number of newspaper/journal articles simply because the farming community have encountered difficulties in applying for and drawing down funds from the mainstream banks.
Increasing Membership
The credit unions intend lending to the farming community and in return the farmer will provide security for that particular lending. No doubt, these loans will be of a higher value than what would traditionally be associated with credit unions and is a very welcome development for the credit union movement as it will expand the areas in respect of which they will now lend and indeed increase membership which is always an objective of the credit union movement.
Role played by Pierse Fitzgibbon Solicitors
For a number of years, Pierse Fitzgibbon Solicitors have developed a secured lending product which allows its credit union clients to put in place secured lending. In these situations, Pierse Fitzgibbon acts as legal advisor to the credit union while the member will employ the services of their own solicitor in order to obtain independent legal advice and ensure that they are fully au fait with the legal effects of putting in place security.
Essentially what is happening is that the farmer/member is providing security by way of property to the credit union over a period of time in return for the loan facilities. It is not unlike a mortgage situation although credit unions by regulation do not engage in mortgage lending.
Therefore, credit unions are encouraging both existing members and new members to discuss with them the possibility of secured lending. The process has become more mainstreamed as credit unions enter this area and gain more experience. This is an option worth considering while also supporting your local credit union.
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