First Carolina Corporate signs share guarantee agreement

GREENSBORO, N.C. (5/11/09)--First Carolina Corporate CU's board of directors voted May 4 to participate in the Temporary Corporate Credit Union Share Guarantee Program, based on modifications made by the National Credit Union Administration (NCUA).

The revised program is more flexible and provides corporates the opportunity to receive share guarantee extensions.

Effective immediately, all of First Carolina's uninsured shares--except capital accounts--are covered under the program through at least Sept. 30, 2011, with quarterly extensions available through Dec. 31, 2014. NCUA re-opened the program to all corporate credit unions.

First Carolina's board earlier had decided not to participate in the program because of concerns about protecting member credit unions' capital and protecting the membership's ability to have a voice in determining its corporate's future. At its April 21 meeting, NCUA's Board voted to revise the program to include more precise language and increased flexibility.

"Frankly, the revised Share Guarantee Program is a better deal and addressed many of the issues that we had concerns with in the prior program," said David Brehmer, president/CEO of First Carolina. "We appreciate the time NCUA's staff and board took to take another look and make certain changes, and we support their efforts to stabilize liquidity within the corporate system to minimize future losses to credit unions," he said.

First Carolina's board based its decision on liquidity, the current recapitalization effort, member feedback, the changing landscape in the corporate network and improvements to the overall share guarantee program, said the corporate.

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