According to footnote 5 of the NCUSIF's audited financial statements,
"[a]s of December 31, 2012, the NCUSIF had an outstanding collateralized senior note due from an insured credit union for $179.3 million. Accrued interest on the notes is due on a monthly basis. Interest on this note has variable terms."
This note first appeared in the financial statements of the NCUSIF in August of 2012.
The most likely candidate is Evangelical Christian Credit Union of Brea, California.
As of December 2012, Evangelical Christian reported $179,254,167 of outstanding term borrowings from corporate credit unions. This is exactly equal to the amount of the note receivable minus the $70 million in capital notes provided to Texans Credit Union and AEA Federal Credit Union by the NCUSIF.
I suspect that this collateralized senior note had to deal with the 2012 liquidation of a corporate credit union.
So is this a new form of 208!
ReplyDeleteIf evangelical can't make good, then credit unions pay.
Didnt Hampel at Cuna say there would be no more assessments for credit unions?
Think NCUA told us that too.
How do I tell my board they cant add another branch because assessments are unknown but appear to be growing?
If it wasn't for outside advisors or you, Mr. Leggett, we would have no clue what's going on in our own industry.
Infuriating.
No wonder we call Cuna ( cu not accountable).
Seems the current squeeze can soon become the crush for cus.
ReplyDeleteThe total amount a credit union will have to payout for the TCCUSFund, plus the eventual Legacy Assets loss realization may be only 25% complete to-date while the assessments' 12 year time limit ending 2021 is already 33% expired. This would not include other than CCU losses like this $179MM.
Meanwhile, The NCUA's Executive Director is now talking about 'Basel Lite' and increases in capital requirements for credit unions. For banks and so cus, Basel III can bring a 200bp increase to required capital 2 short years from now in 2015.