Corporate CU share guarantee extended

ALEXANDRIA, Va. (4/22/09)--The National Credit Union Administration (NCUA) voted Tuesday to provide an option through its Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP) that would allow quarterly extensions of the guarantee through December 2012.

Under the two-year rolling expiration date, the final guarantee would expire Dec. 31, 2014.

Twenty-three corporates are currently participating in the guarantee program. The NCUA also reopened program enrollment until May 15 to give the remaining four an opportunity to consider participation in the revised TCCUSGP. The agency said its actions Tuesday include revisions to TCCUSGP agreements with corporate credit unions to eliminate ambiguities, provide greater flexibility and improve operations.

"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.

He added, "It is important that they continue to provide the liquidity that is needed to maintain corporate stability. The board is committed to the safety and soundness of all credit unions and the protection of the deposits of the 90 million credit union members, and we will continue to take the necessary action to instill confidence in the system."

courtesy of cuna.org