Will Corporate Holdouts Sign The New Share Guarantee LUA?
It's too early to call, they say.
Sara Flynn, president/CEO of the $100 million Iowa Corporate Central Credit Union, said she and her board need more time to review the revised Letter of Understanding and Agreement, released only one business day prior to press time.
"As with all decisions we will review the potential benefits and risk and ultimately come to the decision that is in the best interest of our members," she said.
Spokesperson Margaret Blankers, whose Lenexa, Kans.-based public relations agency represents both the $1.5 billion Eastern Corporate Federal Credit Union and the $1.75 billion First Carolina Corporate Credit Union, had the same response, saying both corporates need more time to review the new agreement.
Doug Wolf, president/CEO of the $238 million Midwest Corporate Credit Union, was on the road visiting member credit unions when the NCUA released the new LUA. He hadn't yet seen the revised agreement, but said his board plans to meet before or around May 1 to review the details and discuss their options.
Wolf said he's pleased the NCUA "opened the process back up." He said Midwest Corporate is "more open to it now than we had been originally," saying the Bismarck, N.D.-based institution is "comfortable and positioned where we need to be."
NCUA spokesperson Cherie Umbel said the agency can't address why the four corporates did not originally sign on.
However, Umbel said the revised Letter of Understanding and Agreement specifically states it terminates with the expiration of the share guarantee, enables staff to change LUA terms or waive provisions, should business needs deem it necessary as time goes on, and provide flexibility in the event the LUA is counterproductive, as corporate business lines change over time.