The NCUA today extended its program that guarantees principal and interest of debt issued under the agency's Temporary Corporate Credit Union Liquidity Guarantee Program.
During the board's executive session it agreed to extend the debt issuance period to June 30, 2010, a year beyond the planned expiration date of June 30, 2009. The guaranteed debt will expire on June 30, 2017, instead of June 30, 2012. The fee structure will be changed from 75 basis points per year to a fee depending on the maturity of debt.
The program was launched last fall and includes: federal funds purchased, promissory notes, commercial paper and unsubordinated unsecured notes.
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"Today's changes to this program provide liquidity enhancement that complements the Temporary Corporate Credit Union Share Guarantee Program. The fee structure is expected to provide sufficient income to fund any losses related to the TCCULGP."
Additionally, the extended term of the guarantee will allow corporate credit unions to secure low-cost stable sources of funding," NCUA Chairman Michael E. Fryzel said in a statement.
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