The NCUA resolution strategy has three key components:
- Isolate and fund legacy assets - Legacy assets will be segregated and managed in an asset management estate. The legacy assets will be securitized. This strategy will result in a lower overall cost of resolution than immediate outright sale of the legacy assets and will also allow the costs of resolution to be funded over ten years rather than immediately. By lowering the overall cost and spreading the assessment period over ten years, the NCUA plan minimizes impact on credit unions and provides adequate time to plan for and adjust to the assessments.
- Conservatorship of five critically undercapitalized corporate credit unions – U.S. Central Corporate FCU in Lenexa, KS; Western Corporate FCU in San Dimas, CA; Constitution Corporate FCU in Wallingford, CT; Members United Corporate FCU in Warrenville, IL; and Southwest Corporate FCU in Plano, TX.
- Establishment of bridge corporate credit unions to conduct essential activities of the conserved corporate credit unions with no interruption in member services, particularly facilitating payment and settlement services.
Deposits remain insured or guaranteed and the resolution plan is designed to assure no loss to taxpayers.
In the table below, click on the links to read about actions to address legacy assets within the corporate credit union system including the legacy assets isolation and funding strategy, corporate conservatorships, and bridge corporates.
THESE DOCUMENTS ARE BEING PROVIDED FOR INFORMATION PURPOSES ONLY, AND DO NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, SECURITIES. THEY DO NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY REQUIRE TO MAKE A FULL ANALYSIS OF THE SECURITIES TRANSACTIONS REFERENCED HEREIN. THE INFORMATION CONTAINED HEREIN REGARDING SECURITIES TRANSACTIONS WILL BE SUPERSEDED, AND IS QUALIFIED IN ITS ENTIRETY, BY INFORMATION CONTAINED IN THE DEFINITIVE OFFERING DOCUMENTS FOR THE SECURITIES TRANSACTIONS. OFFERS OF SECURITIES WILL BE MADE ONLY THROUGH THE DELIVERY OF DEFINITIVE OFFERING DOCUMENTS FOR THE SECURITIES TRANSACTIONS AND IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS.