The NCUA Board today asked Congress to create a stabilization fund so credit unions can spread out over seven years premiums to the NCUSIF for the $5.9 billion cost of placing U.S. Central Federal Corporate Credit Union and Western Federal Corporate Credit Union into conversatorship.
The agency would use the $6 billion borrowing authority it has already requested from Congress to set up the fund. The House approved the authority; it is pending in the Senate.
The Temporary Corporate Credit Union Stabilization Fund would be financed by a loan from the Treasury Department's Federal Financing Bank which NCUA would pay back over a seven-year period.
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