Catalyst Corporate Stands Ready to Help Credit Unions Access Central Liquidity Facility Funding
The Strategic Link partner outlines six required steps credit unions need to take.
Details have been finalized that will allow credit unions with assets of less than $250 million to access the National Credit Union Administration’s Central Liquidity Facility (CLF) through an agent relationship provided by Catalyst Corporate Federal Credit Union.
The CLF is a mixed-ownership, government corporation created to improve financial stability by serving as a liquidity lender to credit unions.
Acting as an agent, Strategic Link partner, Catalyst Corporate, is now assisting credit unions with the process, helping them with required documentation. Catalyst Corporate can also facilitate the transfer of CLF loan funds (and repayment amounts) as part of its general settlement process between the CLF and credit unions’ accounts with Catalyst Corporate. For now, the measure is temporary and set to expire on Dec. 31.
In order to access agent CLF funding, the following steps are necessary:
- Step 1: Approve a resolution of the Board of Directors to borrow funds. Submit a copy of the resolution along with the required documents and forms.
- Step 2: Provide financial statements and income and expense statements for the previous month-end and as of the month-end for the latest dividend period. (If the request is filed after the 15th day of the current month, the financial statements submitted must be as of the last day of the previous month-end.) Provide statistical reports for the previous month-end and as of the month-end for the latest dividend period, and include the total dollar amount of delinquent loans for the following time frames: 2 to 6 months, 6 to 12 months and 12 months and over.
- Step 3: Complete a Request for Funds – Form 7001.
- Step 4: Complete a Liquidity Need Loan Application – Form 7005.
For requests with a maturity over 90 days, the following steps are also required:
- Step 5: Complete a Statement of Cash & Receipts & Disbursement – Form 7002.
- Step 6: Complete a Cash Flow Projections document – Form 7003.