- National Credit Union Administration Revises and Extends Term of Temporary Corporate Credit Union Liquidity Guarantee Program
- June 22, 2009
- Law Firm: Alston & Bird LLP - Atlanta Office
Today, the National Credit Union Administration (NCUA) announced certain revisions to and the extension of its Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP), which was adopted last October. Under existing TCCULGP terms, the National Credit Union Share Insurance Fund (NCUSIF) guarantees "certain unsecured debt of participating corporate credit unions (corporates) issued from October 16, 2008 through June 30, 2009, and maturing on or before June 30, 2012.” Under the TCCULGP, once qualified debt is guaranteed by the NCUA it will remain guaranteed until it is fully repaid. Under the revised program terms, qualifying debt obligations will continue to “generally include federal funds purchased, promissory notes, commercial paper, and unsubordinated unsecured notes.”
The NCUA has now extended to June 30, 2010, the deadline for issuing TCCULGP-guaranteed debt, and extended to June 30, 2017, the maximum maturity of debt issued after July 1, 2009. NCUA has also modified the fees “the corporate must pay the NCUSIF for the guarantee, without regard to whether the debt was issued before or after June 30, 2009.” Corporates presently participating in the TCCULGP under its original terms will be permitted to participate under the revised framework. Corporates may elect not to offer “the NCUA guarantee on all qualifying debt obligations.” The NCUA previously published a list of corporates that agreed to participate under the original terms of the program, and anticipates issuing an updated list on its website on or before June 30, 2009.