ALEXANDRIA, Va. — U.S. Central FCU is such a key player in providing Central Liquidity Facility access to credit unions, once the corporate is closed in October and its CLF stock is redeemed, the CLF's subscribed capital stock and surplus – and therefore, borrowing capacity – will drop 96%, Director of Examination and Insurance Larry Fazio told the NCUA Board on Tuesday during the governing body's monthly meeting.
The CLF is permitted to borrow up to 12 times its total subscribed capital stock and surplus, according to the National Credit Union Central Liquidity Facility Act.
As of May 31, 2012, the CLF counted $3.85 billion in stock and surplus, which equates to $46 billion in borrowing ability. Without U.S. Central, which serves as the only agent group representative that can access CLF, remaining CLF stock and surplus is only $155 million, for a borrowing authority of $1.86 billion, Fazio said.
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