Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NCUA extends corporate CU liquidity guarantee program
ALEXANDRIA, Va. (5/22/09)—The National Credit Union Administration’s Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP ) will now provide greater liquidity and “low-cost stable” funding sources to eligible corporate credit unions over a longer period of time after the NCUA board Thursday voted to revise parts of the program during a closed meeting. The TCCULGP provides a National Credit Union Share Insurance Fund (NCUSIF) guarantee of principal and interest for debt issued under the program. As modified, the issuance period ending date of TCCULGP funds will be extended until June 30, 2010 and guaranteed debt will not expire until June 30, 2017. The fees paid on existing debts will also change, with debts with a maturity of up to two years being subject to an annualized assessment rate of 10 basis points. Debts with a maturity of six to seven years will be charged 35 basis points, yearly, with graduated price points for many dates in between. This fee structure should “provide sufficient income to fund any losses related to the TCULGP,” NCUA Chairman Michael Fryzel said in a statement accompanying the release. The revised terms would also restrict the amount of NCUSIF-covered debt that corporate credit unions could issue. Corporate credit unions looking to take part in the TCCULGP must execute a new TCCULGP Agreement. Eligible creditors must ensure that a given debt obligation qualifies for coverage under the newly-revised TCCULGP and must also “obtain and record” confirmation that the participating credit union “intends that particular obligation to be guaranteed by the NCUA“ to cover any debt obligation issued after June 30, 2009, the NCUA release said.


RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
11 hours ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
16 hours ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
17 hours ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
17 hours ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
18 hours ago