Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CLF borrowing cap could be raised
WASHINGTON (9/26/08)—As part of a continuing resolution to keep the government funded into 2009, the U.S. House of Representatives has approved a cap increase for the borrowing authority of the National Credit Union Administration’s (NCUA’s) Central Liquidity Facility (CLF) for Fiscal Year 2009. Currently the CLF is authorized by the Federal Credit Union Act to lend up to 12 times its paid-in capital—an amount that translates today to about $41 billion. However, Congress annually caps the CLF lending authority at $1.5 billion through the appropriations process. The House voted yesterday to temporary remove the arbitrary $1.5 billion cap and permit the CLF to lend up to its full statutory authority of $41 billion. The Credit Union National Association (CUNA) worked closely with NCUA and key House members and their staff to secure the higher CLF ceiling. “Eliminating the cap would be preventative and timely,” said Ryan Donovan, CUNA vice president of legislative affairs, Thursday. “We all are aware of the concerns regarding access to liquidity throughout financial markets. Because the elimination of the cap requires an act of Congress, we need this action now before Congress adjourns for the year,” he said. The CLF cap elimination passed the House 370-58 Wednesday as part of the Continuing Resolution and will now be considered in the Senate, where an economic stimulus package, and possibly the Troubled Asset Recover Program, might be added. If approved, then the entire package would have to be considered by the House again for concurrence. “It’s got a long way to go, but the legislation is moving in the right direction,” CUNA’s Donovan said.
Other Resources

RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
1 Day ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
1 Day ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
1 Day ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
1 Day ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
1 Day ago