Hyland Outlines Steps Necessary To Participate In Corporate Pre-Pay Plan

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SAN FRANCISCO-NCUA has cleared the way for credit unions to prepay their corporate stabilization assessments, but they will have to follow a series of rapid-fire steps to participate in the program.

That was the message from NCUA Board Member Gigi Hyland at NAFCU's Annual Conference here. Hyland spoke just one day after the board approved voluntary prepayment of assessments.

"The goal is $500 million in prepaid assessments," she said. "On July 11 there will be a webinar to explain the program to credit unions. On July 29 program agreement forms must be received by NCUA."

The next step is dependent on how many credit unions sign up and how much they pledge toward prepayments, Hyland explained. The minimum is the greater of $1,000 or five basis points of insured shares as of March 31; the maximum 48 basis points.

On Aug. 9 a letter will be sent to CUs informing them how many participated and the exact dollar amount of the prepayment. On Aug. 18 NCUA will take a direct debit from each credit union's account.

Hyland urged credit unions to sign up for NCUA Express, which she described as a voluntary e-notification system. Participating CUs receive an e-mail or an RSS feed any time something is posted to NCUA's website, she said.

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Corporate credit unions