Re-posting of Jubilee Fund brief

Yesterday I sent out a 2-page attachment on a new CD Loan Fund that will be
administered by Assiniboine Credit Union here in Winnipeg, Manitoba. In many
cases a major pile of garble resulted. I apologize for the inconvenience
that this caused. We still do not know what happened. So, I'll be cautious
in re-sending. Here it is again, but this time only in Text format and as
part of this letter, rather than as an attachment. Happy "Millennium"! -
Russ

Jubilee Fund Launch in Winnipeg, Manitoba

The Jubilee Fund Inc. was officially launched on January 6th, 2000, by a
coalition of faith organizations in partnership with Assiniboine Credit
Union. The Jubilee Fund is designed to help people overcome problems
associated with economic and social deprivation; particularly in inner-city
neighbourhoods. It also seeks to promote co-operative, community-based
businesses, housing projects and social programs, in keeping with the Fund's
social justice orientation. The Jubilee Fund is Winnipeg's first independent
community loan fund and Assiniboine is the first credit union (or bank) in
Canada to enter into a comprehensive administrative agreement with such a
fund.

Membership in The Jubilee Fund Inc. is open to all incorporated faith
organizations. Its founding members include several Roman Catholic orders,
the Mennonite Central Committee and the United Church. Other Christian and
non-Christian faith groups are being invited to join. Assiniboine Credit
Union has been contracted to sell Jubilee Investment Certificates and to
administer loans that are secured by the Fund. The launch of the fund was
accompanied by member investments into the Fund amounting to $200,000 plus
donations totalling nearly $50,000. The Fund is expected to rise to at least
$500,000 this year and to leverage an additional $1.5 million in
conventional Credit Union financing.

The Fund will secure project loans, which would otherwise be ruled out by
credit unions or banks because of an applicant's shortage of collateral or
income. It also will consider redeemable share equity in worker
co-operatives and other community-based projects.

The Fund is being capitalized by loan deposits from member organizations and
from the general public. Theses loan deposits come from the sale of Jubilee
Investment Certificates at Assiniboine's Community Loan Centre, 200 Main St.
The Community Loan Centre also will administer the loans that are secured by
the Jubilee Fund.

Jubilee Investment Certificates are available in three and five-year terms
at 2% below regular Credit Union term deposit rates. The 2% goes to a
loan-loss reserve and Fund operating expenses. JICs are pooled into a
single, interest-bearing account that is used as collateral against
community development loans, or portions of loans, that the Credit Union
would otherwise not be able to do.

Donations also are used to build the loan-loss reserve and to cover
operating costs. For donations, charitable tax receipts are provided upon
request. Donations may be sent to: The Jubilee Fund Inc., 800 Adele St.,
Winnipeg, MB, R3E 0K6.

The Jubilee Fund will be unique in that it will combine independent control
of a community development fund with the administrative and lending
experience of an established credit union. This is a major advantage for a
CDF. Elsewhere, independent CDF's handle both the intake of investment loans
and the disbursements of project loans on their own; initially with no track
record. Alternatively, very large credit unions, like Pacific Coast Savings,
VanCity and Desjardins, have established CDF's as their own subsidiaries,
without independent community control.

Jubilee Investment Certificates provide the general public with an
opportunity to make "ethical", or "socially responsible", investments that
are geared to local economic and social needs. Assiniboine administers the
sale and reporting of JICs as an agent on behalf of the Jubilee Fund. The
JICs are not a Credit Union product and are not insured. Although cushioned
by a loan-loss reserve, they will be subject to possible losses stemming
from the risk-capital nature of Jubilee support for community economic
development ventures. Whereas conventional venture capital funds seek high
rates of return in short periods of time, out-going Jubilee loans and share
positions are largely expected to take the form of "patient capital", with
lower rates of returns over relatively long periods of time. In the end, the
level of risk associated with Jubilee investments will heavily depend upon
efforts to ensure that projects have strong internal capacity, effective
mentorships, and social and technical support.

The Jubilee Fund is a Winnipeg response to the international, ecumenical,
Jubilee Year 2000 initiative. The idea of a Jubilee Year is based on an
ancient Hebrew belief that every 50 years, "land was to be returned, debts
forgiven, and fields laid fallow in order to restore equality within
society". (1996 Canadian ecumenical statement.)

Assiniboine Credit Union was approached by the Jubilee Fund coalition in
1998 after they decided that they wanted to mark the Jubilee year 2000 with
a community development fund that would help strengthen people and
neighbourhoods that have suffered as result of the serious inequities in our
economy. Subsequently, Assiniboine worked closely with the coalition on the
technical design of the fund and is now represented on the Jubilee Fund
Board of Directors. Assiniboine is an open bond, community credit union. It
has 44,000 members and manages assets worth $480 million.
..................................................

Russ Rothney, Manager, Community Economic Development
Assiniboine Credit Union, 200 Main St., Winnipeg, MB, Canada, R3C 2G1
Phone: (204)958-8756 Fax: (204)943-6414
rothneyr@assiniboine.mb.ca http://www.assiniboine.mb.ca



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