ALEXANDRIA, Va. – The NCUA Board is expected to vote in closed meeting today to extend the terms of its Temporary Corporate CU Liquidity Guarantee Program, which provides a 100% guarantee on all unsecured debt issued by the corporates.
The guarantee, which covers such instruments as federal funds purchased, promissory notes, commercial paper and unsubordinated unsecured notes, currently expires on debt issued by June 30, but is expected to be extended for at least another two years.
The program is similar to the Temporary Liquidity Guarantee program approved by the FDIC in October.
The terms of the current temporary liquidity guarantee covers debt issued between Oct. 16, 2008 and June 30, 2009 and maturing on or before June 30, 2012.
The action follows last month’s extension of the guarantee on corporate deposits/shares on a rolling basis for an additional two years.
