The following post is provided by Credit Union National Association (CUNA), World Council's direct member organization in the United States.
The National Credit Union Administration (NCUA), an independent U.S. federal agency that charters and regulates federal credit unions, issued a Letter to Credit Unions (20-CU-14) providing information on the establishment of Central Liquidity Facility (CLF) agent memberships and encouraging credit unions which are not direct, regular CLF members, or already covered by an agent member, to consider the benefits of joining the CLF.
The U.S. Coronavirus Aid, Relief, and Economic Security (CARES) Act provides temporary authority for corporate credit unions to become agent members. According to NCUA, all 11 corporate credit unions have joined the CLF as agent members, extending CLF coverage to more than 3,700 credit unions and increasing the CLF’s borrowing capacity by more than $13 billion.
In the letter NCUA Chairman Rodney Hood also points out that CLF access for credit unions with less than $250 million in assets that are already direct, regular members of the CLF does not change.
In addition, credit unions that have an existing relationship with a corporate credit union will not see a change in their relationship as a result of their corporate credit union becoming an agent member of the CLF.
“If your credit union is covered by these new CLF agent members, you should work directly with your corporate credit union to request a CLF loan. Covered credit unions do not need to contact the CLF," the letter reads. "Your corporate credit union will serve as the liaison between your credit union and the CLF for any loans requests. If your credit union is a covered credit union, would like to apply for a CLF loan, and is a member of multiple corporate credit unions, please contact those corporate credit unions to determine which one is serving as your liaison to the CLF."