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benefits of the Credit Union because no determination has been made of the allocation of such amounts between JM Family Enterprises, Inc. and the Credit Union. The Credit Union participates in the JM Family Enterprises, Inc. defined benefit post-retirement medical plan. The plan covers all full-time status employees who elect coverage and satisfy the plan's eligibility requirements when they retire. It is not possible to determine the net periodic post-retirement benefit cost attributable to the Credit Union for the years ended September 30, 2017 and 2016, nor is it possible to present separately the actuarial accumulated post-retirement benefit obligation for the Credit Union because no determination has been made of the allocation of such amounts between JM Family Enterprises, Inc. and the Credit Union. NOTE 7: COMMITMENTS AND CONTINGENT LIABILITIES Legal Contingencies The Credit Union is a party to various miscellaneous legal actions normally associated with financial institutions, the aggregate of which, in Management's opinion, would not be material to the Credit Union's financial condition. Off-Balance-Sheet Risk The Credit Union is a party to conditional commitments to lend funds in the normal course of business to meet the financing needs of its members. These commitments represent financial instruments to extend credit which include lines of credit, credit cards, and home equity lines that involve, to varying degrees, elements of credit, and interest rate risk in excess of the amount recognized in the financial statements. The Credit Union's exposure to credit loss is represented by the contractual notional amount of these instruments. The Credit Union uses the same credit policies in making commitments as it does for loans recorded in the financial statements. Unfunded loan commitments under lines of credit are summarized as follows: September 30, 2017 September 30, 2016 Credit card $ 11,253,949 $ 10,727,063 Home equity 2,083,389 1,685,824 Preferred line of credit (PLOC) 1,806,333 1,675,251 Share draft line of credit 94,535 97,445 Total $ 15,238,206 $ 14,185,583 Commitments to extend credit are agreements to lend to a member as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Credit Union evaluates each member's creditworthiness on a case-by-case basis. The amount of collateral obtained to secure borrowing on the lines of credit is based on Management's credit evaluation of the member. Unfunded commitments under lines of credit and revolving credit lines are commitments for possible future extensions of credit to existing members. These lines of credit are uncollateralized with the exception of home equity loans and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Credit Union is committed. Concentrations of Credit Risk A significant amount of the Credit Union's business activity is with its members who are employees or former employees of JM Family Enterprises, Inc. The Credit Union may be exposed to credit risk from a regional economic standpoint, since a significant concentration of its borrowers work or reside in the state of Florida. However, the loan portfolio is well diversified, and the Credit Union does not have any significant concentrations of credit risk except unsecured loans, which by their nature increase the risk of loss compared to those loans that are collateralized. The Credit Union's policy for repossessing collateral is that when all other collection efforts have been exhausted, the Credit Union enforces its first lien holder status and repossesses the collateral. The Credit Union has full and complete access to repossessed collateral. Repossessed collateral normally consists of vehicles and residential real estate. In addition to the above-noted credit risk, the Credit Union may be exposed to credit risk as a result of Hurricane Irma since a significant number of members were affected as a result of this storm. The Credit Union is monitoring member loans affected as a result of the hurricane and makes adjustments to the allowance for loan and lease losses account through the provision for loan loss expense as additional information is obtained. JM Associates Federal Credit Union Notes to the Financial Statements 27 The Way We Do Things Has Changed. Who We Are Has Not! • 2017 Annual Report