Credit unions holding out hope the NCUA will extend the corporate share guarantee beyond Dec. 31 should start makingother plans.

John Zimmerman, public affairs specialist for the agency, saidthe regulator is still planning to end the share guarantee at theend of this year.

“Ending the share guarantee program is a critical step toward anormal business operating environment for the corporates,”Zimmerman said Wednesday. “Each stage of the corporate systemresolution processhas come with challenges and we very much appreciate thatfact.”

First Entertainment Credit Union President/CEO Chuck Bruen saidhe's concerned corporates could experience big draw down ofdeposits due to the guarantee's expiration, at a time whenliquidity cycles are at a low point.

“How prepared are they to handle a big draw down?” he asked. Theleader of the $962 million Hollywood, Calif., credit union saidhe's transferred most of his corporate business to the FederalReserve, but still keeps investment deposits at a couple ofcorporates.

Marnie Nemcoff, vice president of marketing at the $130 millionMatadors Community Credit Union in Chatsworth, Calif., said herteam isn't worried about the guarantee expiration, but said thecredit union is proactively looking into options.

“We're not leaving Corporate America, but we are looking at whatwe can do to avoid having to lose our insurance coverage,” Nemcoffsaid.

In a letter to credit unions this past March, the NCUA said whenthe Share Guarantee expires on Jan. 1, 2013, NCUA coverage ondeposits in corporate credit unions will be limited to the standardmaximum share insurance amount of $250,000. The guarantee appliedto overnight accounts and certificates.

“Before the Share Guarantee expires, you should determinewhether to make any adjustments necessary to meet your creditunion's risk tolerance,” the letter advised.