NCUA charters Maun Federal Credit Union
Credit Union will promote financial inclusion and independence to local Islamic community
ALEXANDRIA, VA (May 6, 2021) — Maun Federal Credit Union, in Kendall Park, New Jersey, has been chartered to serve a local Islamic community, the National Credit Union Administration announced today.
The NCUA granted a federal charter and National Credit Union Share Insurance Fund coverage to the new credit union. The charter became effective April 26, and Maun Federal Credit Union expects to open in June.
“The organizers of Maun Federal Credit Union have worked hard to make this day possible,” NCUA Chairman Todd M. Harper said. “Appropriately enough, ‘Maun’ means ‘small kindness,’ which is an apt way of describing a credit union’s mission. The organizers recognized the unmet need for financial services in their community and set about to create a solution through the credit union cooperative business model, tailored specifically for their members. I am pleased we were able to help them fulfill their vision.”
Maun Federal Credit Union will be an Islamic-faith-based, no-interest credit union whose not-for-profit, cooperative business model will fill a need for affordable, federally insured financial services among members of its community. The credit union will serve employees and members of the New Brunswick Islamic Center in New Brunswick, New Jersey, and employees and members of the Islamic Society of Central Jersey in Monmouth Junction, New Jersey.
During its first year of operations, Maun will focus on non-interest-bearing consumer loans and offer its membership:
- Share savings accounts
- Direct deposit
- ACH transfers
- Wire transfer services
- Notary services
The new credit union has a mentoring agreement with Jafari No-Interest Credit Union, a federally insured, state-chartered credit union in Houston, Texas, which has a similar no-interest, fee-based business model. Jafari provided assistance with the business plan and policy development during Maun’s charter application process.
Maun Federal Credit Union member accounts will be protected by the National Credit Union Share Insurance Fund. Administered by the NCUA and backed by the full faith and credit of the United States, the Share Insurance Fund protects individual accounts up to $250,000, and a member’s share in all joint accounts is insured to $250,000. The Share Insurance Fund separately protects IRA and Keogh retirement accounts up to $250,000.
Maun Federal Credit Union is the first federal credit union chartered in 2021.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
