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Frequently Asked Questions

Specific questions about the NCUA’s Corporate System Resolution Program and the NGN Program may be directed to Investor-related information is available from licensed brokers, Bloomberg, Intex, and the following trustee websites: Wells Fargo ( and The Bank of New York (

General Questions

Why must federally insured credit unions pay for the losses at the corporates?

The Federal Credit Union Act requires that any premiums or assessments be shared proportionally by all federally insured credit unions (credit unions) based on insured shares. The NCUA Board developed the Corporate System Resolution Program to pay for the resolution costs within the credit union system at no loss to the taxpayer.

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How did the NCUA reduce the overall costs of the Corporate System Resolution Program to credit unions?

Managing to the least long-term cost consistent with sound public policy is one of the core principles established by the NCUA Board as part of the Corporate System Resolution Program. First, NCUA assessed the value of all assets in the failed corporate credit unions. Second, to the extent possible, NCUA sold those assets that were highly marketable and for which good value could be obtained, such as agency-backed securities, loans, and other miscellaneous investments. Third, NCUA implemented a strategy to address the largest group of assets, referred to as the Legacy Assets. In order to protect credit unions from realizing the full market loss of the Legacy Assets at liquidation, NCUA implemented the NGN Program, which re-securitized those investments, provided the cash needed to facilitate the liquidations of the failed corporate credit unions, and avoided a loss to the taxpayer.

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Initially, the Stabilization Fund was to close after seven years. When did this get extended?

On September 24, 2010, NCUA and the United States Department of the Treasury agreed to extend the life of the Stabilization Fund until June 2021.

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How long can credit unions expect to be subject to annual assessments to pay for the Corporate System Resolution Program?

The NCUA Board will determine the annual assessments until the Stabilization Fund expires in June 2021. The length of time credit unions will be subject to assessments will be based on the level of actual resolutions costs relative to the pace of the annual assessments set by the NCUA Board. The amount of the annual assessments will be based on a variety of factors including Stabilization Fund cash needs, projections of losses and cash flows on the Legacy Assets, performance of the Legacy Assets, and projections of losses related to disposing of other assets in the Asset Management Estates.

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What are the specific costs associated with the Corporate System Resolution Program?

These costs are driven by losses on the Legacy Assets, disposal of other assets acquired in liquidation, bridge corporate transition expenses, interest on borrowings, expenses associated with monitoring the re-securitized Legacy Assets, and other liquidation costs. You can find the current projected range of costs in the "Resolution Costs Detail" section of the transparency website at Click the tab “Regulation & Supervision” and select the option “Corporate System Resolution," then select “Resolution Costs Detail” from the menu on the right.

For information on current period expenses, refer to the audited financial statements for the Stabilization Fund at the following link: Stabilization Fund Financial Statements

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What are the current borrowing costs from the United States Department of the Treasury?

You can find information on borrowings and associated expenses in the "Borrowing Costs" section of the transparency website at Click the tab “Regulation & Supervision” and select the option “Corporate System Resolution," then select “Borrowing Costs” from the menu on the right.

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What is the impact of the Corporate System Resolution Program to the credit union system?

On September 24, 2010, the NCUA Board approved a comprehensive strategy to resolve the problems posed by the corporate credit union investment losses. Prior to adopting the strategy, NCUA carefully evaluated a wide range of options to ensure the least long-term cost solution consistent with sound public policy. NCUA’s actions preserved member confidence in the credit union system, including uninterrupted payment system activity to consumer credit unions and their 92 million members. The program also included the implementation of necessary reforms and allowed transition to a new system based on credit union choice.

The NCUA Board regularly evaluates the impact of annual assessments on the credit union system. Prior to approving an assessment amount, NCUA reviews the effect on net worth and earnings for individual credit unions and the industry as a whole (refer to Letters to Credit Unions 10-CU-09 and 11-CU-14). Further, the NCUA Board instructed examiners to factor out the adverse impact of assessments when evaluating and rating credit union earnings. Finally, NCUA will be as flexible as the law allows in reviewing and approving a Net Worth Restoration Plan for every credit union that falls into Prompt Corrective Action due to assessments.

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What accounts for the difference between projected remaining assessments and the funds NCUA will need to retire the Treasury borrowing?

The assessment amounts shown represent the projected range of net remaining assessments. There are assets remaining to be monetized in the AMEs and some projected residual value remaining from the legacy assets collateralizing the NGNs, which won’t be available until the NGNs mature. While it is a matter of timing, the combination of the two ultimately provides resources to fulfill corporate resolution obligations.

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Where can I get additional information about the Legacy Assets, NGN Program, and associated costs?

NCUA has dedicated transparency websites for the NGN Program and the Corporate System Resolution Costs. These websites and other additional information can be found on Click the tab “Regulation & Supervision” and select the option “Corporate System Resolution” or “Guaranteed Notes Program.” Details related to the individual Legacy Assets can be found at NCUA’s Corporate Credit Union FOIA Requests page.

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Is the Liquidating Agent Planning on Additional Distributions in 2023?

In order to assist credit unions with budgeting in 2023, NCUA has evaluated projected returns on the liquidated corporate credit unions. NCUA estimated that amounts will be payable to member credit unions within these ranges:

Credit Union Type Range on original balance
US Central MCA 4.9 percent
US Central PIC 35.9 to 52.0 percent
Members United Share Dividend 0.49 to 0.61 percent
Southwest Share Dividend 0.39 to 0.49 percent
Constitution MCA 16.9 to 21.1 percent

In October 2022, credit unions which held capital or share accounts with the liquidated corporate credit unions may receive a letter from the NCUA containing aggregate distribution estimates projected during 2023. These estimates will include a 'low' to 'high' dollar range based on the percentage noted above. Credit unions may find the information useful for planning and budgeting purposes. However, credit unions should not accrue the amounts since they are not guaranteed. Further, the timing and amount of future distributions will depend on future performance, the availability of cash through orderly liquidation of assets, payment of senior claims, and the resolution of outstanding litigation.

If your credit union held a capital or share account at one of the liquidated corporate credit unions and a letter isn’t received, it is because your estimated payment is less than $10,000. You may still receive funds. These estimates are solely being provided to assist in planning and budgeting. There is no obligation to use the information for budgeting purposes.

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