Wednesday, January 11, 2012

Wind-Down Letter for U.S. Central Bridge

Almost 3 years after seizing control of the operations of U.S. Central FCU, NCUA has started to write the final chapter of this failed corporate credit union.

On January 10, NCUA sent a letter to its members on the orderly wind-down of the wholesale corporate credit union's services.

The letter notes that NCUA is seeking to minimize service disruptions, while at the same time minimizing the cost to the Temporary Corporate CU Stabilization Fund.

The letter specifically mentions ACH processing through the APEX platform. ACH processing and pricing will remain status quo through June 30, 2012. On July 1, 2012, ACH pricing will be increased by 80 percent. The ACH operations will cease no later than the end of 2012.

Each U.S. Central bridge member are required to develop a plan and timeline for executing its transition from U.S. Central Bridge. The plan must be completed and submitted to the Office of Corporate Credit Unions by February 24, 2012.

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