The NCUA will repay the U.S. Treasury the $1 billion outstandingbalance on the agency's borrowing line by Oct. 31, NCUA officialsannounced Oct. 18.

With that payment, the Temporary Corporate Credit UnionStabilization Fund's outstanding borrowings from the U.S. Treasurywill be fully repaid. The NCUA's $6 billion borrowing line remainsavailable to satisfy any contingency funding needs in the future,including obligations of the NCUA Guaranteed Notes Program.

“The success of the corporate resolution program is a testamentto the hard work and perseverance of our entire team, and I extendmy deep personal gratitude to all of them for making thispossible,” NCUA Board Chairman Rick Metsger said.

Agency officials said, however, that no funds will be availableto provide federally insured credit unions with an immediate rebateof Stabilization Fund assessments. In addition, no funds areavailable for recoveries by investors with claims against thedepleted capital of the failed corporate credit unions.

The NCUA said it must satisfy any senior obligations of the fundand corporate credit union asset management estates.

The potential for rebates or recoveries can change over time andthe projected values of the Stabilization Fund and the corporatecredit union asset management estates may not be realized until2021, NCUA officials said.

The NCUA was the first financial regulator to recover losses from investments in securities on behalf offailed financial institutions.

The agency used the net proceeds from settlements to repay the stabilization fund's outstandingborrowings from the U.S. Treasury and to decrease the amount thatsurviving credit unions must pay to recoup the losses of thecorporate credit union system.

“This is another good sign about the improving condition of thecorporate stabilization fund,” CUNA Chief Policy Officer BillHampel said.

He said the repayment is a further indication that credit unionsmay receive a partial refund of assessments and restoration ofdepleted capital in the conserved corporates.

“NAFCU will continue to urge the agency to be fully transparentin how and when the funds will be refunded to credit unions,”President/CEO B. Dan Berger said.