Texas Dow Employees Credit Union

“Custodial funds in escrow represent payments for principal and interest, as well as for taxes and insurance. These amounts are held in escrow, with a corresponding liability recorded until the date that such funds are released by the credit union for their intended purpose. The audited financial statement offsets the escrow and agency funds by the amount of the segregated special bank accounts and excludes those accounts from corporate assets. This return includes the segregated cash accounts in form 990, part x on lines 1 and 2 and discloses the escrow account balances on line 21.”

“Custodial funds in escrow represent payments for principal and interest, as well as for taxes and insurance. These amounts are held in escrow, with a corresponding liability recorded until the date that such funds are released by the credit union for their intended purpose. The audited financial statement offsets the escrow and agency funds by the amount of the segregated special bank accounts and excludes those accounts from corporate assets. This return includes the segregated cash accounts in form 990, part x on lines 1 and 2 and discloses the escrow account balances on line 21.”

“The credit union is exempt, by statute, from federal and state income taxes. Texas dow employees credit union is a state-chartered credit union described in internal revenue code ("irc") section 501(c)(14). As such, the credit union is exempt from federal taxation of income derived from the performance of activities that are in furtherance of its exempt purposes. However, irc section 511 imposes a tax on the unrelated business income (as defined in section 512) derived by state-chartered credit unions. Many states have similar laws. The specific application of section 512 to the various activities conducted by state-chartered credit unions has been an issue for many years. In 2007, the internal revenue service ("irs") issued a series of technical advice memoranda ("tam") to a number of state-chartered credit unions located throughout the country. In these tams, the irs ruled certain products and services to be subject to taxation as unrelated business income. In light of the tams, the credit union has assessed its activities and any potential federal or state income tax liability. In the opinion of management, any liability arising from federal or state taxation of activities deemed to be unrelated to its exempt purpose is not expected to have a material effect on the credit union's financial condition or results of operations.”

“Century oaks title company, l.l.c. - timing difference 475,000.”

“Gain/loss on investment 7,834. Rounding 3.”

“Net change in unrealized loss on securities 1,333.”

“Gain/loss on investment 7,834. Rounding 5.”