ALEXANDRIA, Va. (9/17/15)--A corporate credit union bridge loan proposal is one of three final rules the National Credit Union Administration board will vote on at today’s monthly board meeting. In addition to the final rules, the board will hear a community charter expansion request and provide a quarterly update on the Temporary Corporate Credit Union Stabilization Fund.
First proposed at the NCUA’s April board meeting, the corporate credit union rule would allow corporates to more easily provide short-term bridge loans to credit unions awaiting funding from the NCUA’s Central Liquidity Facility (CLF).
Corporates would be allowed to make bridge loans for up to 10 business days as interim funding to CLF borrowers. The bridge loans would not count against the corporate credit union’s aggregate unsecured lending cap.
CUNA supported the proposal in its June comment letter, saying it would “make it easier for credit unions to use the CLF by providing them with an immediate source of funds while awaiting funding of a CLF loan.”
The other two final rules to be considered by the board are:
The board will also rule on a community charter expansion from Charlotte Metro FCU of Charlotte, N.C.
A live video stream of the meeting will be available, with a link appearing on the NCUA.gov homepage at approximately 9:45 a.m. (ET), with the meeting scheduled to begin at 10 a.m. (ET).
A recording of the meeting will be posted by the NCUA in the following weeks.