NCUA Issues CLF Interim Final Rule

The National Credit Union Administration (NCUA) Board issued on April 13 an interim final rule that will enhance the ability of the Central Liquidity Facility (CLF) to serve as liquidity backstop to the nation’s credit union system.

The rule makes it easier for credit unions to join the facility as a regular member or through a corporate credit union as part of an agent relationship, and access emergency liquidity should the need arise.

Specifically, the interim final rule:

• Eliminates the six-month waiting period for a new member to receive a loan;
• Makes temporary amendments to the waiting period for a credit union to terminate its membership;
• Eases collateral requirements on some assets; and
• Allows, temporarily, for an agent member to borrow for its own liquidity needs.

The interim final rule becomes effective upon publication in the Federal Register, and it will expire on December 31, 2020.

The NCUA Board urges all natural person and corporate credit unions to join the CLF, if they have not done so.

Read the interim final rule.