Will the four holdout corporates sign the NCUA's revised Corporate Credit Union Share Guarantee Program by the May 15 deadline? At least one corporate will consider it.
Doug Wolf, president/CEO of the $238 million Midwest Corporate Credit Union said he hasn't seen the revised agreement yet, but said he's pleased the NCUA "opened the process back up," and said he and his board are "more open to it now than we had been originally."
Wolf said he objected to the LUA at the time because some provisions inhibited his strategic plans. However, he said the Bismarck, N.D.-based corporate is now "comfortable and positioned where we need to be."
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The less ambiguous and more flexible agreement might be more palatable to Wolf and the other three holdouts: Iowa Central Corporate, Eastern Corporate and First Carolina Corporate.
According to NCUA Spokesperson Cherie Umbel, the revised LUA terminates with the expiration of the share guarantee, enables staff to change LUA terms or waive provisions, and provides flexibility in the event the LUA is counterproductive.
Iowa Central, EasCorp and First Carolina representatives said they need more time to review the revised LUA with their boards before making a decision. Wolf said he and his board will meet by May 1 to review the agreement and discuss options.
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