NCUA announces $865.5M Corporate System Resolution Program distribution
NCUA, in its role as liquidating agent, announced Monday an $865.5 million distribution to the 1,800 membership capital account holders of the former Members United, Southwest Corporate, and U.S. Central corporate credit unions.
The agency also announced the end of the NCUA Guaranteed Notes program and will continue to effectuate its plan to orderly liquidate the remaining post-securitized assets and make further distributions when possible.
As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA to date has previously made two rounds of distributions.
The first distribution was made to the former capital holders of Southwest Corporate in July 2020. The second distribution was made to the former capital holders of Southwest Corporate, Members United, and U.S. Central in April of this year.
These former capital holders will also receive the latest round of distributions, scheduled to occur before the end of September 2021. With this third distribution, the NCUA will have returned more than $1.3 billion to former membership capital account holders.
The Corporate System Resolution Program is a landmark initiative established by the NCUA Board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis. The program allowed the credit union system to absorb the failures of U.S. Central, WesCorp, Southwest, Members United, and Constitution corporate credit unions over time.
Information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims and the process for determining when distributions are made to member capital account holders, can be found on the NCUA’s website.