Monday, July 11, 2011 11:34:00 AM
WASHINGTON - With the July 29 deadline to submit a completed program agreement for the NCUA's corporate assessment prepayment plan fast approaching, CUNA has released a comprehensive white paper to help credit unions assess the plan and make a decision on whether or not to participate.
The white paper notes that the prepayment plan's financial benefits may not be broadly felt, but could prove vital for some credit unions.
Credit unions that wish to take part may pledge a minimum of $1,000, or 5 basis points of March 31, 2011 insured shares, whichever is greater. The maximum that can be contributed is 48 bp of those same shares.
The agency has set the target size of the program at $500 million, and will not move forward with the plan if less than $500 million is pledged by credit unions.
The agency will tally the total amount of credit union commitments on Aug. 9, and, if it moves forward with the plan, will debit the amounts that have been pledged from credit union accounts on Aug. 18.
The white paper is available for download on the League Web site by clicking here. This aspect of the NJCUL site is limited to members only and is password protected. To receive a username and password for the site, please send an email to Marissa Anema at firstname.lastname@example.org requesting credentials.