CREDIT UNION DEPOSIT PROGRAM
Utilizing DTC Eligible Nonmember Share Certificates

B. Riley Securites is a full-service investment bank and broker-dealer that provides corporate finance, sales, trading and equity research to institutional clients. Our fixed income sales and trading professionals specialize in the unique funding needs of banks and credit unions, currently serving over 300 credit unions nationwide that represent billions of dollars in investment capital. At B. Riley Securites, we put our customers' interests and objectives first and offer high quality execution services and solutions tailored to meet your specific funding goals.

ELIGIBLE ISSUERS

Well capitalized federal and state-chartered* credit unions that are federally insured by NCUA.

ELIGIBLE DEPOSITORS

• As defined in 12 CFR 745.1, a federally insured credit union* may accept nonmember deposits from credit unions, public units and political subdivisions.
• Low-Income Designated (LID) credit unions* may accept nonmember deposits from any source.

MAXIMUM AMOUNT OF NONMEMBER SHARES ALLOWABLE

12 CFR 701.32 provides that a federally insured credit union* may receive public unit and nonmember shares in an amount up to 50 percent of the credit union's net amount of paid-in capital and unimpaired capital and surplus (i.e. member shares plus undivided earnings) less any public unit and nonmember shares, as measured at the time of acceptance of each public unit or nonmember shares, or $3 million, whichever is greater.

REQUIRED DOCUMENTATION

Brokerage Agreement, Low-Income Addendum (if qualified), Blanket Issuer Letter of Representations (BLOR) for Cusip eligibility, Terms Agreement and Master Share Certificate, all of which will be provided to you.

SALES PROCESS

• Completion of the required documentation
• Typically, a 7 to 14 day selling period.
• Delivery of funds, net after fees, on the settlement date.

BENEFITS

• Collateral-free unlike FHLB advances.
• In general, no early withdrawal of funds allowed prior to maturity.
• Ability to meet your liquidity needs without compromising your existing member deposits or disrupting your local market.
• Can be used to satisfy a liquidity plan mandated by your regulator or internal policy.
• Ability to generate from $1,000,000 to $100,000,000 in a single transaction.
• Opening only one share certificate, along with making only one monthly interest payment per issue, saves both operational time and money.
• No added expense incurred for marketing, check processing or customer service support as is typical with other nonmember deposit programs.

^{*If permitted by state law in the case of federally insured state chartered credit unions. Although many states have adopted federal guidelines, the ability to accept nonmember deposits should be verified while also determining if there are any additional state-imposed restrictions or limitations that need to be adhered to prior to implementing any nonmember share certificate program.}

^{Disclaimer: This content may not be modified without the approval of B. Riley Securities. Information presented is for illustration purposes only and does not represent a recommendation, solicitation or offer to buy, sell or issue any security. Past performance is not an indication of future performance.}