ALEXANDRIA, Va. – The NCUA Board agreed today to extend the corporate share guarantee program to accommodate a two-year rolling expiration date on deposits and provide the option of quarterly extensions through December 2012. If the option to extend each quarter is fully utilized, the final guarantee would expire December 31, 2014.
"The action of the NCUA Board sends a clear signal to natural person credit unions that their investments in corporate credit unions are not only safe, but also meet sound asset liability management principals by providing for orderly laddering of these investments," said NCUA Chairman Michael Fryzel in a statement."It is important that they continue to provide the liquidity that is needed to maintain corporate stability."
There are 23 corporate credit unions participating in the temporary guarantee program. Today’s action includes revisions to guarantee agreements with corporate credit unions to eliminate ambiguities, provide greater flexibility and improve operations.
