Bankowość i finanse · 25.09.1997

Central Liquidity Facility

The National Credit Union Central Liquidity Facility(the CLF), a mixed-ownership government corporation within theNCUA, serves as a liquidity source for its member credit unions. The current regulation requires the CLF to secure each loan with a security interest in all of the assets of the member credit union. This requirement interferes with the ability of credit unions to establish credit arrangements with other parties and in some cases may preclude members from borrowing from the CLF. In order to accommodate credit arrangements between the CLF member credit unions and multiple parties, NCUA is proposing to amend this requirement to permit the CLF to take, in lieu of a blanket security interest, a first priority security interest in specific assets of the credit union with a net book value at least equal to 110% of the amounts owed on the CLF advance or Agent loan. The proposed rule is intended to provide credit unions with greater flexibility in their normal operations while ensuring that the CLF is adequately protected for any loans that it makes.