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EasCorp to participate in NCUA share guarantee program
BURLINGTON, Mass. (5/6/09)--Eastern Corporate FCU (EasCorp) will participate in the National Credit Union Administration's (NCUA) Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP), according to EasCorp. EasCorp's Board of Directors voted April 27 to participate (Inside EasCorp May). "NCUA has accepted our participation and, effective immediately, all of EasCorp's uninsured shares are now covered under the Guarantee Program through at least Sept. 30, 2011," EasCorp said. Quarterly extensions will be possible later, at NCUA's discretion. EasCorp's board declined to participate in the program when it was offered by NCUA in February. Several factors contributed to that decision, "most especially our interest in protecting your capital and EasCorp's retained earnings, generated through your patronage," the newsletter said. "The board felt that, by accepting the TCCUSGP agreement, EasCorp would potentially lose control of its future." However, a turning point came after the NCUA Board met to consider extending the guarantee program and enabling all corporate credit unions to participate. The action included revisions to the program's agreements with corporates to eliminate ambiguities and provide greater flexibility. EasCorp's board, after consulting with legal counsel, "was satisfied that all previous concerns had been addressed and remedied in the revised agreement." The guarantee program has been modified and extended, said EasCorp. New share deposits covered under the guarantee are allowed a maximum two-year maturity. The guarantee currently expires Sept. 30, 2011. At least 30 days before the end of each calendar quarter, beginning this September, NCUA's Office of Corporate Credit Unions will evaluate the need to extend the expiration date. Any expiration date extensions will be announced at least 15 days before the end of each quarter by NCUA's executive director to allow members to adjust their investment horizons and make maturity decisions. The first opportunity NCUA will have to announce an extension will be Sept. 15. If the option to extend each quarter is fully used, the final guarantee would expire Dec. 31, 2014, said EasCorp.


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