Skip to main content
United States flag An official website of the United States government
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Corporate Capital Distribution Process

Following the liquidation of five corporate credit unions during the Corporate System Resolution effort, the NCUA Board, as liquidating agent, issued claim certificates to all liquidated corporate credit union membership-capital account (MCA) and paid-in capital (PIC) holders. The claim amounts were based on the balance each credit union holding MCA and PIC was instructed to write off in the year preceding liquidation, during the financial crisis, regarding MCA and PIC balances at corporate credit unions. These certificates represent claims against the individual asset management estates (AMEs) of each failed corporate credit union.

Since then, employees in the NCUA’s Office of General Counsel, Office of Examination and Insurance, the Asset Management and Assistance Center (AMAC), and members of the NCUA Guaranteed Note (NGN) Committee have been working to maximize recoveries to the AMEs. Until the AMEs are closed, an evaluation of recoveries and obligations will be done at least semi-annually to determine if sufficient funds are available for distribution to MCA and PIC holders, along with possible dividends to shareholders.

2023 Corporate Credit Union Capital Share and Dividend Distributions

An evaluation conducted by the liquidating agent determined that sufficient funds were available for U.S. Central Federal Credit Union (U.S. Central) PIC holders to receive a distribution. The liquidating agent approved a $76 million distribution based on the June 30, 2023, financial statements, payable by September 30, 2023.  The following chart shows the distribution as a percentage of each group’s (MCA holders, PIC holders) original claim against the respective AMEs, along with the dividend as a percentage of the share and certificate balance on the date of liquidation:

AME % of Original MCA claim % of Original PIC claim Dividend %
U.S. Central N/A 25.8% N/A
Members United N/A N/A N/A
Southwest N/A N/A N/A
Constitution N/A N/A N/A

This distribution is to the PIC claim holders of U.S. Central. The distribution has no impact on the health or operating level of the Share Insurance Fund.

Per the NCUA regulations, 12 C.F.R. §709.5(e), “[a]ll unsecured claims of any category or class or priority described in paragraphs (b)(1) through (b)(7) of [§709.5] shall be paid in full, or provisions made for such payment, before any claims of lesser priority are paid. If there are insufficient funds to pay all claims of a category or class, payment shall be made pro rata. Notwithstanding anything to the contrary in [§709.5], the liquidating agent may, at any time, and from time to time, prior to the payment in full of all claims of a category or class with higher priority, make such distributions to claimants in priority categories described in paragraphs (b)(1), (b)(2), (b)(3), (b)(4), and (b)(5) of [§709.5] as the liquidating agent believes are reasonably necessary to conduct the liquidation, provided that the liquidating agent determines that adequate funds exist or will be recovered during the liquidation to pay in full all claims of any higher priority. If a surplus remains after making distribution in full on all allowed claims described in paragraphs (b)(1) through (b)(9) of [§709.5], such surplus shall be distributed pro rata to the credit union's shareholders.”

After ensuring adequate funds exist to fully pay all prior levels, it was determined that a partial distribution to PIC holders at §709.5(b)(9) for U.S. Central is permissible.

Calculating the Capital Distribution

On a quarterly basis, the liquidating agent calculates the anticipated recovery on assets and estimated expenditures for each corporate AME, along with tabulating past actual results. The reports on these calculations for the last six years can be found on the NCUA’s website.

All five corporate AMEs (U.S. Central, Western, Members United, Southwest, and Constitution) still have potential obligations to reimburse the NCUA which represent more senior claims in the payout priorities. NCUA regulations permit distributions to MCA and PIC holders only after all senior claims have been fully satisfied, or sufficient provisions have been made.

The liquidating agent has compared each estate’s cash to its remaining obligations. This analysis, which is completed semi-annually in accordance with standard procedures, shows that funds are available for an interim payout to PIC holders of U.S. Central.

In Millions of Dollars
As of June 30, 2023 1
U.S. Central Western Members United Southwest Constitution
Available Cash 105 0 4 3 1
Cash from U.S. Central Capital Distribution 2 0 12 3 10 5 1
All Remaining Fiduciary Liabilities (28) (2,391) (2) (2) (0)
Distribution Potential 78 (2,379) 11 7 1
Approved MCA Distribution 0 0 0 0 04
Approved PIC Distribution (76) 0 0 0 0
Approved Dividend Distribution 0 0 0 4 0 4 0

The chart below reflects the potential future distributions to members and capital holders of the liquidated corporates effective June 30, 2023, and beyond. Our projections indicate that additional funds will be available for distribution to U.S. Central, Members United, Southwest, and Constitution in the future. However, until the underlying distressed assets have been monetized, and liabilities paid, there are no guarantees of future performance. The liquidating agent will continue to take whatever actions are needed to safeguard and monetize assets under its management. Evaluations of future distributions will be performed on a semi-annual basis based on June and December financials.

In Millions of Dollars as of June 30, 2023 1 U.S. Central Western Members United Southwest Constitution
Distribution Potential (not yet realized) 1 0 11 7 1
Net Realizable Value Estimate of Remaining Legacy Assets 52 78 2 10 10
Projected Additional Recovery from US Central AME N/A 8 7 4 1
Projected Funds Available to Distribute 53 5 (2,293) 19 20 12
Remaining MCA/PIC Claims (174) (1,144) 0 0 (30)
Potential Dividend to Members 6 0 0 19 20 0

Corporate Capital Distributions and the Share Insurance Fund

The Temporary Corporate Credit Union Stabilization Fund was established for the corporate credit union liquidations as part of the financial crisis in 2010. The Stabilization Fund was principally responsible for covering losses of the failed corporates until it was closed, and the liabilities were assumed by the Share Insurance Fund in 2017.

The payment of insured shares by the Share Insurance Fund becomes a claim against the liquidation estate of the closed institution, under 12 C.F.R. §709.5(b)(6). Before any funds can be paid out at the (b)(7) level – MCA – all higher levels must be paid in full, or provisions made for such payment.

The Share Insurance Fund has been made whole for the payout of insured member shares with respect to U.S. Central, Members United, Constitution, and Southwest. Additionally, provisions were made for all anticipated continuing liquidation expenses, including obligations to reimburse the Share Insurance Fund for potential guaranty payments or the funding of other liquidating expenses for these four estates. Thus, the distribution will have no impact on the Share Insurance Fund.

Electronic Funds Transfer Payments Form

This authorization agreement for electronic funds transfers (EFT) is intended for use by federally insured credit unions, not NCUA vendors or the public.

NCUSIF Authorization for EFT Payments in PDF (28 KB).

This form provides credit unions with a convenient means of providing the liquidating agent with needed information to make electronic payments to credit unions. The completed form can be mailed or faxed to the liquidating agent using the information provided on the bottom of the form.

Any comments or questions should be directed to the NCUA’s Office of the Chief Financial Officer at or hotline 877.452.1463.


1 Numbers may not add due to rounding.

2 The approved U.S. Central paid in capital distribution to the four AMEs has been included with the June 30, 2023, financial information to allow the calculation to reflect these funds as part of those AME’s Distribution Potential.

3 As the Share Insurance Fund still has valid claims against Western AME, their share of the distribution will be used to pay down the liability owed to the Share Insurance Fund.

4  Members United, Southwest, and Constitution will not have current period distributions due to the low amount of funds available.  Evaluations of future distributions will continue with consideration to the available distribution amounts and the administrative costs involved in the distributions.

5 As this amount is gross, and the prior line in the chart shows distributions from U.S. Central to the other four corporates, the funds available to distribute excluding the U.S. Central payment to other AMEs equals $33 million. This distribution reflects the remaining projected distribution over time and is subject to the orderly liquidation of remaining securities.

6 Dividends can only be paid after all senior claims have first been satisfied.

Last modified on