The ICUL Compliance Team is very happy to introduce our newest team member, Shannon Basile. Shannon has joined us as a Compliance Analyst, and will be available to our ICUL member credit unions to help with compliance questions. Shannon has over twenty years of experience working in the financial industry. Her main focus has been in operations and leadership. Shannon spent the last ten years of her career managing the main office for Abri Credit Union, where she also served as the commercial banking specialist and a loan officer. In addition, she worked closely with the Abri Credit Union Risk Management department to develop and implement procedures ensuring compliance standards were met. Shannon was also an active member of the Romeoville, IL Chamber and Strong Outstanding Women in Business group. Shannon earned both her Associates of Arts in Business Administration with honors and Bachelor of Arts in Business Management Summa Cum Laude from Benedictine University. Knowledge is Shannon’s greatest passion and it is her firm belief that one should never close themselves off from the opportunity to learn. We are very excited to have Shannon share her vast knowledge and experience to help our member credit unions. In addition to answering compliance questions, Shannon will also be available for presentations, chapter meetings, and credit union staff training.
Shannon can be reached at 630-983-3407 and [email protected]. Welcome Shannon!
Travel to Mexico
I recently had a question from a credit union manager who was dealing with a member that wanted to take a vehicle that is collateral for a loan into Mexico. The credit union wanted information on how to handle the situation and ensure that its collateral was protected. After researching the topic I found some critical information all lienholders should know in the event they are presented with a similar circumstance. Considering the amount of people who are now traveling by road rather than air I decided to share this information with all of you!
According to the U.S. Department of State, U.S. Driver’s Licenses are valid forms of identification to enter Mexico. Mexican law requires that the owner of the vehicle is either driving or inside the vehicle at the time of entrance into Mexico. In addition, auto insurance policies issued in the United States are typically not valid in Mexico. Therefore, it is highly recommended that anyone who is traveling into Mexico with a vehicle purchase Mexican auto insurance before the trip.
Since Mexican law requires the vehicle owner to be either driving or in the vehicle when it enters the country, the vehicle owner must be prepared to show proof of ownership, such as a vehicle title or registration. It is highly recommended if the vehicle is a lease or has a lien that the owner also obtain permission in the form of a notarized letter from the lienholder or leasing company. Therefore, your credit union may receive requests from your members for a letter granting permission to take the vehicle out of the country.
This type of request from your member will give your credit union the opportunity to ensure their collateral is protected while in Mexico. Prior to drafting a notarized letter for your member, you should require verification that the proper Mexican auto insurance has been purchased with the credit union named as the lienholder. There are several U.S. insurance companies that offer Mexican auto insurance so it should not be difficult for your member to obtain the proper coverage, as required by your loan agreement, before making the trip.
Once the Mexican auto insurance coverage has been verified then you, as the lienholder, can draft a letter granting permission for the owner to travel with the vehicle into Mexico. The letter should include the name of the vehicle owner, as stated on the title, the vehicle year, make and model, license plate number, and color. In addition, be sure to note the travel location and dates.
Working with members to ensure they have a safe and hassle-free road trip out of the country is essential to maintaining the strong relationship that you have worked so hard to build. In addition, this process allows credit unions to maintain proper insurance coverage on collateral even when it is outside of the country.
For more information from the U.S. Department of State regarding international road trips click here.
By: Shannon Basile, Compliance Specialist