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Stabilization Fund History

The Temporary Corporate Credit Union Stabilization Fund was created in May 2009, to accrue the losses from five failed corporate credit unions and assess insured credit unions for such losses over time. But for the creation of the Stabilization Fund, these losses would have been borne by the National Credit Union Share Insurance Fund, exhausting the Share Insurance Fund’s retained earnings and significantly impairing credit unions’ one percent contributed capital deposit.

The Stabilization Fund also is used to account for the costs of the Corporate System Resolution Program and provide short-term and long-term funding to resolve a portfolio of residential mortgage-backed securities, commercial mortgage-backed securities, other asset-backed securities, and corporate bonds, collectively referred to as Legacy Assets. Under the Corporate System Resolution Program, NCUA created a re-securitization program where NCUA issued a series of NCUA Guaranteed Notes that were sold to investors to provide long-term funding for the legacy assets.

On September 28, 2017, the NCUA Board unanimously voted to close the Temporary Corporate Credit Union Stabilization Fund effective October 1, 2017, ahead of its sunset date of June 30, 2021. All remaining funds, property, and other assets were transferred to the National Credit Union Share Insurance Fund, representing a major milestone in the wind-down of the Corporate System Resolution Program.

While the net projected assessment range and various other website exhibits and links related to the Stabilization Fund are no longer relevant, they have been preserved here for reference.

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