ALEXANDRIA, Va. (3/21/12)--The National Credit Union Administration (NCUA), in letter to credit unions No. 12-CU-03, reminded credit unions that the Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP) will end, as previously scheduled, on Dec. 31.
The TCCUSGP backs up the National Credit Union Share Insurance Fund's (NCUSIF) coverage of all shares--excluding paid-in-capital and membership capital accounts--at corporate credit unions. This insurance extends beyond the customary $250,000 share insurance level.
All qualifying shares, including existing deposits and new qualifying deposits, will remain fully covered under the share guarantee until Dec. 31, according to the NCUA. Once the TCCUSGP expires on Jan. 1, 2013, NCUA coverage on deposits in corporate credit unions will be limited to the standard maximum share insurance amount of $250,000, the agency said.
The NCUA said it released the letter to ensure that credit unions that conduct business with corporates have the time needed to evaluate their current corporate account holdings and determine whether to make any adjustments necessary to meet their individual risk tolerance.
The agency encouraged credit unions to work with their corporate to explore options that best meet the credit union's specific needs.
The agency in the letter noted that the credit union industry is entering the final phase in the successful stabilization of the corporate credit union system, and said that "all products and services offered by conserved corporate credit unions will be seamlessly transitioned to other providers – with no interruption of service to members," by the end of this year.
For the full NCUA letter to credit unions, use the resource link.