Corporates announce NCUA prepay participation
WASHINGTON (8/2/11)—As the National Credit Union Administration (NCUA) tallies credit union pledges to its voluntary Corporate Stabilization Fund assessment prepayment plan, two corporate credit unions announced their involvement in the program Monday.
Volunteer Corporate CU (VolCorp), of Nashville, Tenn., announced that it plans to contribute 48 basis points (bp), the maximum amount permitted by the NCUA, into the prepayment plan. The credit union's contribution would total $221,392.
The NCUA has said it would move forward with the prepayment plan if credit unions pledge a total of $500 million.
In the VolCorp announcement, CEO Rick Veach said that the payment "is one tangible way we can not only reduce our members' expense, but also help with the financial burden of the Corporate Stabilization Fund for all credit unions."
In Columbus, Ohio's, Corporate One FCU President/CEO Lee Butke echoed those comments, saying that his board of directors "was resolute in the fact that since Corporate One is in a strong financial condition, we should absolutely do what we can to help our member credit unions manage their 2011 and 2012 assessments, especially at a time when so many are experiencing challenging economic times."
Butke added that the credit union supports the NCUA's efforts to help credit unions better manage these assessments, and is "proud" to help the agency smooth out those costs.
The deadline for NCUA prepayment plan applications was Friday, and the agency said it would tally the total amount of credit union commitments by Aug. 9, If it moves forward with the plan, the NCUA will debit the pro-rated amounts that have been pledged from credit union accounts on Aug. 18.
The prepayment plan could reduce the 2011 regular assessment from about 25 bp to about 18.5 bp.
The NCUA is expected to set its 2011 Temporary Corporate Credit Union Stabilization Fund assessment at an Aug. 29 meeting.
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