NCUA: Corporate Prepayment Program Will Not Move Forward
August 3, 2011 - The National Credit Union Administration (NCUA) announced that it did not meet $500 million in credit union commitments for the Voluntary Prepayment of Corporate Stabilization Fund Program to move forward.
Of the nation’s nearly 7,300 federally insured credit unions, 799 pledged $369.9 million to voluntarily prepay assessments; however, the NCUA Board determined that the program would not launch unless it had $500 million in commitments.
The prepayment program would have allowed credit unions to pre pay up to 0.48 percent of insured shares with a minimum advance of $1,000 or 0.05 percent of insured shares (as of March 31, 2011). The funds prepaid to NCUA would count toward assessments starting in 2013.
NCUA stated in an August 3 statement that it might consider reviving a prepayment program in 2012 if significant credit union interest continues to exist. The Board is slated to consider the 2011 assessment rate for the Stabilization Fund in the coming weeks.
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