Following the liquidation of five corporate credit unions during the Corporate System Resolution effort, the NCUA Board, in its capacity as liquidating agent, issued claim certificates to all liquidated corporate credit union membership-capital account (MCA) and paid-in capital (PIC) holders. In the year before liquidation, and due to the financial crisis, NCUA instructed credit unions holding MCA and PIC at the five corporate credit unions to write off these assets. The claim amounts were based on the written off balances. These certificates represent claims against the individual asset management estates (AMEs) of each failed corporate credit union.
Since then, NCUA employees in the Office of General Counsel, the Office of Examination and Insurance, the Asset Management and Assistance Center, and members of the NCUA Guaranteed Note Committee have been working to maximize recoveries to the AMEs. Until the AMEs are closed, we will evaluate recoveries and obligations at least semi-annually to determine if sufficient funds are available for distribution to MCA and PIC holders, along with possible dividends to shareholders.
2026 Corporate Credit Union Capital Share and Dividend Distributions
We evaluated the June 30, 2026, financial statements and determined that sufficient funds were available for U.S. Central Federal Credit Union (U.S. Central) AME’s PIC holders and Constitution Corporate Credit Union (Constitution) AME’s MCA holders to receive a distribution. We have approved a $71 million distribution based on the June 30, 2026, financial statements, payable by October 31, 2026. The following chart shows the distribution as a percentage of each group’s 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 | 0.00 | 22.00 | 0.00 |
| Western | 0.00 | 0.00 | 0.00 |
| Members United | 0.00 | 0.00 | 0.00 |
| Southwest | 0.00 | 0.00 | 0.00 |
| Constitution | 7.90 | 0.00 | 0.00 |
This distribution is to the MCA claim holders of Constitution and PIC claim holders of U.S. Central. This distribution has no impact on the health or operating level of the Share Insurance Fund.
NCUA regulations at 12 C.F.R. § 709.5(e) state:
“All 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, the liquidating agent determined that a partial distribution to MCA holders and PIC holders at 12 C.F.R. § 709.5(b)(7) and (b)(9) for Constitution and U.S. Central, respectively, is permissible.
Calculating the Capital Distribution
On a quarterly basis, we calculate the anticipated recovery on assets and estimated expenditures, and tabulates past actual results, for each corporate AME (Western, U.S. Central, Southwest, Members United, and Constitution). We publish the last nine years of reports on these calculations on NCUA’s website.
All five corporate AMEs may still have potential obligations to reimburse 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.
For each corporate AME, we have compared the 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 and MCA holders of Constitution, but unencumbered funds are not available for a meaningful interim payout to shareholders of Members United and Southwest.
| In Millions of Dollars As of June 30, 2026 1 | U.S. Central | Western | Members United | Southwest | Constitution |
|---|---|---|---|---|---|
| Available Cash | 101 | 0 | 17 | 21 | 5 |
| Cash from U.S. Central Capital Distribution | 0 | 10 | 8 | 4 | 1 |
| All Remaining Fiduciary Liabilities | (4) | (2,304) | (1) | (1) | (0) |
| Distribution Potential | 97 | (2,295) | 24 | 24 | 5 |
| Approved MCA Distribution | 0 | 0 | 0 | 0 | 5 |
| Approved PIC Distribution | 66 | 0 | 0 | 0 | 0 |
| Approved Dividend Distribution | 0 | 0 | 02 | 02 | 0 |
The chart below reflects the potential future distributions to members and capital holders of the liquidated corporate credit unions, effective June 30, 2026, and beyond. Our projections indicate that additional funds will be available for distribution to U.S. Central, Southwest, Members United, and Constitution in the future. However, until the underlying distressed assets have been monetized, and liabilities paid, there are no guarantees of future performance. We will continue to safeguard and monetize the assets under our management. We will evaluate future distributions on a semi-annual basis, based on June and December financials.
| In Millions of Dollars as of June 30, 2026 1 | U.S. Central | Western | Members United | Southwest | Constitution |
|---|---|---|---|---|---|
| Distribution Potential (not yet realized) | 97 | (2,295) | 24 | 24 | 5 |
| Net Realizable Value Estimate of Remaining Legacy Assets | 8 | 44 | 1 | 0 | 9 |
| Projected Additional Recovery from US Central AME | N/A | 6 | 5 | 3 | 0 |
| Projected Funds Available to Distribute | 1043 | (2,244) | 29 | 27 | 14 |
| Remaining MCA/PIC Claims | (159) | (1,144) | 0 | 0 | (30) |
| Potential Dividend to Members4 | 0 | 0 | 29 | 27 | 0 |
Corporate Capital Distributions and the Share Insurance Fund
The Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) was established for the corporate credit union liquidations in response to 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. Before any funds can be paid out to holders of MCA, at the (b)(7) level of priority, 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, Southwest, Members United, and Constitution corporate credit unions. 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 corporate asset management 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 way to provide us with needed information to make electronic payments. The completed form can be mailed or faxed to us using the information provided on the bottom of the form.
Any comments or questions should be directed to NCUA’s Office of the Chief Financial Officer at NCUSIF@ncua.gov or hotline 877.452.1463.
Footnotes
1 Numbers may not add due to rounding.
2 Southwest and Members United will not have current period distributions due to the low amount of funds available. Evaluations of future distributions will continue with consideration of the available distribution amounts and the administrative costs involved in the distributions.
3 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 $90 million. This distribution reflects the remaining projected distribution over time and is subject to the orderly liquidation of remaining securities.
4 Dividends can only be paid after all senior claims have first been satisfied.