The Resolution Costs are based in large part on a range of estimated losses on the Legacy Assets as well as other expenses relating to resolving the liquidated corporate credit unions. The chart below illustrates the total projected Resolution Costs to the credit union system and sources of payments of those costs. The majority of projected Resolution Costs (more than 90%) are those associated with the Legacy Assets. Other incremental costs include losses on the sale of other assets, bridge corporate transition expenses, borrowing costs, and liquidation expenses. The sources of payment include member capital, actual assessments to date, future assessments to credit unions, and recoveries received as a result of legal action.
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The range of remaining assessments (line "e") is affected both by evolving loss estimates and the assessments collected to date at each point in time.
NCUA has received more than $335 million in recoveries through April 2013 through pursuit of legal claims against securities underwriters. Net proceeds from recoveries will reduce future projected ranges of remaining assessments.