Community Development Credit Union

Community Development Credit Union definition - finance
A non-profit credit union chartered to serve a low-income community. The structure is similar to that of a regular credit union, however, because CDCUs are non-profit, they are tax-exempt. CDCUs offer services not provided by mainstream banks, such as small loans at below-market rates to people who might not qualify for bank loans in a competitive situation. CDCUs rely heavily on banks, foundations, and other investors for deposits to support their work. Federally chartered CDCUs are regulated by the state they operate in.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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