ALEXANDRIA, Va.-The National Credit Union Administration (NCUA) last Tuesday posted its list of 26 corporate credit unions that are participating in the agency's Temporary Corporate CU Liquidity Guarantee Program (TCCULGP).
On Oct.16, the NCUA approved the guarantee program, under which its National Credit Union Share Insurance Fund will provide a 100% guarantee on new unsecured debt obligations.
All corporates were automatically covered for debt obligations issued through Nov. 17, 2008. However, they were then able to elect to opt out of the program by providing notice to the NCUA Office of Corporate Credit Unions. The NCUA's list appeared to carry the names of all but one of the corporate credit unions, including the "corporates' corporate"-U.S. Central.
To qualify under the program, a debt obligation must be issued by eligible corporate credit unions on or before June 30, 2009, and mature on or before June 30, 2012. Included are promissory notes, commercial paper, inter-bank funding, and any unsecured portion of secured debt, according to the agency announcement.
Under the plan, the amount of debt obligations covered by the guarantee per eligible corporate credit union may not exceed the greater of:
* 100% of the eligible corporate credit union's maximum unsecured debt obligations outstanding during the period Sept. 30, 2007 through Sept. 30, 2008;
* An amount determined by written approval of the agency's director of the Office of Corporate Credit Unions, with the prior concurrence of its director of the Office of Examination and Insurance, not to exceed $100 million; or
* An amount determined by the NCUA board.
