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Onsite Coverage: Without U.S. Central, CLF Borrowing Ability Drops 96%

ALEXANDRIA, Va. NCUA insurance chief tells board that failed corporate's formal demise will end CLF borrowing ability for 6,000 credit unions.

By Heather Anderson | Updated on July 24, 2012

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.

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