Welcome to Union Bank, Vermont's community bank.


	MUNICIPAL SERVICES Union Bank offers a variety of Municipal Loan Products to assist municipalities with their finance needs. These include: Line of Credit A line of credit is designed to provide funds to bridge temporary gaps in cash flow and may be used prior to, and in anticipation of the collection of taxes or the receipt of grant or bond proceeds. Features include: • Fixed or variable rates • Terms up to 1 year • Interest paid monthly. Term Loan A term loan is used to finance the purchase of equipment or towards the improvement of equipment or real property. Features include: • Fixed or variable rates • Flexible terms based on the life of the equipment and/or your specific needs • Flexible principal and interest payment plans. Non-Arbitrage Loan IRS regulations allow municipalities to borrow an amount of money equal to the maximum cumulative negative cash flow for the current fiscal year, plus anticipated expenditures for the month following the largest deficit. The municipality must provide cash flow projections for the year in the form of a cash flow certificate. • Loan proceeds are invested in a CD at a higher rate than the interest on the loan • The municipality "earns interest" on the loan • Less than 1 year term (usually 364 days). Municipal Deposit Products In head-to-head comparisons, Union Bank's municipal deposit products compare quite favorably to the competition. We invite you to speak with an expert from our Municipal Services Team for complete details. Municipal NOW Checking Account Union Bank offers a unique municipal NOW checking account to maximize return on your investments while simplifying the process for treasurers. Features include: • Variable interest rate (rate changes with market conditions) • Interest paid daily • No service charges • Unlimited check writing • Unlimited deposits. Certificate of Deposit In some cases, a municipality has funds to invest which are not needed for current expenses. Due to their unique characteristics, municipalities can earn a spread between the interest rate it pays on a loan and the rate it receives on a CD. The net effect is to reduce the cost of borrowing. Insurance Coverage If a municipality's deposits exceed FDIC thresholds, Union Bank will collateralize your "excess" deposits under the State's collateralization formula with performing residential mortgages. Rather than sweeping excess funds into "government issued instruments," deposits are reinvested locally. For more information on Union Bank's Municipal Services, please email us or call us in Morrisville at (802) 888-6600, in St. Johnsbury at (802) 748-1181 or toll-free 1-866-862-1891

St. Albans | Fairfax | Jeffersonville | Johnson | Hyde Park | Morrisville | Stowe | Hardwick | Danville | Lyndonville | St. Johnsbury | Littleton

Order Checks | FDIC Online | MasterCard Secure Code | SBA | Verified by VISA | Equal Housing Lender

All content copyright 2002-2009 Union Bank, Inc. Unauthorized duplication of format and images is a violation of international law.