MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022
N OTE 10 - L INE OF C REDIT The Corporation has entered into a $200,000 secured line of credit agreement with a financial institution. This line of credit incurs interest on outstanding balances at 6.96% as of September 30, 2023. The line of credit is secured by an available-for-sale security held at this institution. There were no amounts outstanding on this line of credit at September 30, 2023 or 2022. N OTE 11 – LLC M EMBER C APITAL S HARES During 2022, two Members disassociated from the LLC. During 2019, one Member requested withdrawal from the LLC. At the date of withdrawal from the LLC, the disassociated Members are due the net balance of their capital account. In accordance with Article XII of the LLC’s Operating Agreement, the LLC is required to pay the Member’s capital over a period not to exceed five years. During the years ended September 30, 2023 and 2022, the LLC paid $5,395 and $5,000, respectively, to the Members who withdrew. As of September 30, 2023 and 2022, the remaining balance owed to the Members that withdrew amounts to $1,583 and $6,978, respectively, and will be paid in increments through November 2026. N OTE 12 - R ETIREMENT P LANS The Corporation and the LLC have separate defined contribution plans intended to qualify under Section 401(k) of the Internal Revenue Code, covering substantially all employees. Under the terms of the plans, the Corporation contributes an amount equal to 10% of an eligible employee’s compensation. Each employee reaching the age of 21 and having completed at least ninety days of service automatically becomes a participant in the plan. Participants are fully vested in 30% of the Corporation’s contribution, considered a Safe Harbor Non-Elective contribution. The remaining 70% of the Corporation’s contribution is a profit sharing contribution in which participants are 20% vested after two years of service, 40% vested after three years of service, 60% vested after four years of service, 80% vested after five years of service, and fully vested after six years of service. For the years ended September 30, 2023 and 2022, expenses attributable to the plans amounted to $164,614 and $197,135, respectively. In addition, the Corporation has entered into a supplemental compensation agreement with a senior executive. This agreement provides for payments for specific periods upon retirement and is subject to certain limitations as set forth in the agreement. The expense applicable to this agreement, based upon the present value method of estimating future payments to be made, amounted to $157,320 and $157,320 for the years ended September 30, 2023 and 2022, respectively.
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98 INTERNATIONAL COLLABORATION
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