On-Site Coverage: NCUA Proposes Prepayment Plan for Corporate Assessments
ALEXANDRIA, Va. — Credit unions could prepay between $10,000 and 36 basis points of insured shares toward their assessments to pay the costs of the rescue of corporate credit unions, under a proposal unveiled Thursday by the NCUA.
Credit unions wouldn't earn any interest and the total collected in prepayments would have to be at least $300 million for the program to take effect.
NCUA Deputy Executive Director Larry Fazio said more than 6,000 credit unions could participate in the program, which would raise funds to help the agency repay the loan from the Treasury Department that established the Temporary Corporate Credit Union Stabilization Fund.
The comment period runs through late June.
The program was announced at an NCUA board meeting at its offices in Alexandria, Va.