In a letter to credit unions on Monday, the NCUA provided information on changes to the Central Liquidity Facility due to the CARES Act. The announcement is below.
Letter to Credit Unions (20-CU-14)
Establishment of CLF Agent MembershipsDear Boards of Directors and Chief Executive Officers:
Letter to Credit Unions, 20-CU-08, Enhancements to the Central Liquidity Facility Membership and Borrowing Authority provided information on changes to the Central Liquidity Facility (CLF) because of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided temporary authority for a corporate credit union to become an agent member of the CLF for a subset of their members.
I am pleased to announce that all eleven corporate credit unions have joined the CLF as agent members effective immediately. As agent members, the corporate credit unions have purchased the CLF capital stock for their member credit unions with assets less than $250 million. Therefore, all credit unions with assets less than $250 million that are members of a corporate credit union (covered credit unions) are now eligible to apply for a loan from the CLF. With this action, the corporate credit unions have extended CLF coverage to more than 3,700 credit unions and increased the CLF’s borrowing capacity by over $13 billion.