Frequently Asked Questions on Member Capital and Dividend Payouts

NCUA’s regulations permit distributions to depleted capital holders only after all more senior claims have been fully paid or sufficient provisions have been made. Using a conservative provisioning approach, and in accordance with standard operating procedures for the Asset Management Estates (AMEs), we have compared each AME’s cash to its remaining obligations. This analysis shows that funds are available to PIC holders of U.S. Central and MCA holders of Constitution. The distributions can occur, regardless of current and future economic events, as they are based solely on cash reserves and not dependent upon the performance of any other remaining asset or obligation.

Economic events will impact the amount and timing of any future distributions. Underlying market conditions and investor demand for the remaining legacy assets will determine the future performance and ultimate monetization of the remaining assets.

The MCA and PIC account distributions for October 2026 (based on June 30, 2026, financial statements) are shown in the chart below. MCA and PIC holders may receive additional distributions in the future, depending on market conditions and the sale of remaining legacy assets.

The distributions will be remitted via electronic funds transfer (EFT) by October 31, 2026, using the banking information that we have on file. 

• If you previously provided your EFT information to NCUA and no changes are required, no further action will be needed.
• If we do not have your EFT information or you are unsure, please complete the authorization agreement for EFT payments to make necessary updates.
• If we do not have EFT information on file, we will reach out to distribution recipients to complete the authorization agreement for EFT payments.

We will work with each non-credit union distribution recipient to ensure timely receipt of the distribution.

Constitution MCA and U.S. Central PIC holders of record will receive payments. After accounting for mergers, purchases and assumptions, and liquidations, over 80 active credit unions and other shareholders will receive a distribution.

Our projections are point-in-time estimates, subject to change, and largely dependent on our ability to affect and conduct an orderly liquidation of post-securitized assets and legal settlements.

No dividends are being paid out in October 2026. 

We anticipate a liquidating dividend (surplus) will remain after all claims are paid for Southwest and Members United. Under 12 U.S.C. §1787(b)(11)(B), for any case in which funds remain after all accountholders, creditors, other claimants, and administrative expenses are paid, the liquidating agent shall distribute such funds to the credit union's shareholders. The dividend will be based on the share and certificate balance at the time of liquidation, not capital balance.

The timing and amount of future distributions will depend on performance, the availability of cash through the orderly liquidation of assets, payment of senior claims, and the resolution of the current outstanding lawsuits. While no dividend is being paid currently, we do anticipate a final dividend distribution in the coming years.

No. 

The four corporate AMEs already reimbursed the Share Insurance Fund for all Share Insurance Fund payments related to the liquidation process. Any distribution represents surplus recoveries from the monetization of these Corporates’ assets. Once the Share Insurance Fund is repaid, any remaining funds (after monetization) must be distributed first to the capital holders. If funds remain after that, each of the Corporate’s shareholders of record at the time of liquidation would receive a pro rata dividend.

A corporate MCA or PIC holder can use the balances as noted on the 2010 claim receipt and multiply that balance using the percent stated above (see the table in the “How much are the total October 2026 Corporate Capital distributions?“ section) to arrive at its estimated distribution. A capital shareholder may recognize that amount in its income statement as other operating income and record a receivable on its balance sheet for the same amount.

For example, Credit Union ABC calculates its payment from the capital distribution to be $106,150. Credit union ABC would make the following journal entry:

No accounting entries are necessary for dividends because no dividends will be made.

You are not required to record an accrual for the distribution in 2026.

For Call Report purposes, if necessary, the member capital distribution should be reported on the Statement of Income and Expense under – Other Operating Income. The corresponding receivable (if you have one) should be reported on the Statement of Financial Condition under – All Other Assets. If you have received payment, then the posting will be to cash.

No credit union is required to record an accrual for the distribution in 2026.

For updates and more detailed information, visit these sites:

• Corporate Asset Management Estate Recoveries and Claims;
• NGN Questions and Answers;
• Corporate System Resolutions Costs; and
• NGN Program