ALEXANDRIA, Va. (10/21/08)--National Credit Union Administration (NCUA) Chairman Michael E. Fryzel issued a Letter to Credit Unions on Friday to remind credit unions that the Central Liquidity Facility (CLF) is an available resource for contingent liquidity during the current market turbulence. “The CLF has a total of approximately $41.5 billion available to meet back-up liquidity demands, appropriated by Congress and administered by NCUA. Credit unions should carefully monitor liquidity and if necessary, utilize the CLF on an as-needed basis,” Fryzel stated in the letter, which is also posted on the NCUA website. The CLF lends to credit unions that are creditworthy and demonstrate liquidity needs. A credit union generally is deemed creditworthy if it is a viable operation. Three forms of loans available through the CLF are:
* Short-term adjustment credits; * Seasonal credits; and *Protracted adjustment credits.
Credit unions can apply for a CLF loan either through a corporate credit union or as a regular member, the NCUA said in a release. Use the resource links below to access the NCUA website and to obtain details on the CLF loan process.