ALEXANDRIA, Va. – NCUA yesterday agreed to extend an emergency program that is guaranteeing more $10 billion of debt issued by corporate credit unions to September 2012.
The Temporary Corporate CU Liquidity Guarantee Program is one of several emergency steps taken by NCUA as part of the corporate bailout, including a guarantee of corporate deposits and guarantee of so-called prior undivided earnings for three corporates.
The main beneficiaries are U.S. Central FCU and WesCorp FCU, which have been operated under NCUA conservatorship since March 2009 and have used the NCUA guarantee to secure more than $10 billion of medium-term notes. They and other corporates also use program to guarantee overnight Fed Funds for their credit union members.
The move will extend the date for new issuances under the guarantee to Sept. 30, 2010 and the limit maturity date until Sept. 30, 2012.
