Corporate Stabilization: Voluntary Prepayment Program Won’t Proceed
Roughly $370 million in pledges falls short of required $500 million threshold.
NCUA will not go forward with the Voluntary Prepayment of Corporate Stabilization Fund Assessment because the agency didn’t receive sufficient pledges from credit unions.
Of the nation’s 7,300 federally insured credit unions, 799 pledged $369.9 million to voluntarily prepay assessments, short of the $500 million the NCUA Board required. Therefore, NCUA will not debit any voluntarily pledged amount from any credit union.
“While the pledges fell short of meeting the required threshold to move forward, the NCUA Board remains open, perhaps, to reconsidering this issue next year,” says NCUA Chairman Debbie Matz.
July 29 was the deadline for prepayment commitments.
The NCUA Board is slated to consider the 2011 assessment rate for the Stabilization Fund in the coming weeks.