Operating Circular 99-2: Regular Member Faclity Advances

NCUA CENTRAL LIQUIDITY
FACILITY
OPERATING CIRCULAR 99-2:
REGULAR MEMBER
FACILITY ADVANCES
OCTOBER 1999

(Last administrative rev: October 9, 2008)

NCUA CENTRAL LIQUIDITY FACILITY
REGULAR MEMBER
CIRCULAR 99-2
TABLE OF CONTENTS
Page

CHAPTER
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Overview
Membership
Requests For Facility Advances
Required Documentation
Liquidity Need Justification
Creditworthiness
Priority of Facility Advance Requests
Processing Time For Facility Advances
Sources of Facility Funds
Disbursement of Facility Advances
Rates And Payments on Facility Advances
Collateral Requirements
Confirmations

2
3
3
3
4
4
5
6
6
7
7
9
9
Page

APPENDIXES
A. Critical Contacts, Addresses, And Phone Numbers
B. Regular Member Loan Transaction Flow-Chart
C. Sample Forms and Documents

A-1
B-1

Application And Agreements For Regular Membership In The National Credit Union
Central Liquidity Facility (CLF - 8702)

C-1

NCUA CLF Repayment, Security And Credit Reporting Agreement (CLF - 8703)

C-2

Forms And Instructions For CLF Loans (NCUA - 7000)

C-3

Request For Funds - National Credit Union Central Liquidity Facility (NCUA - 7001)
Form and Instructions For Completion of Statement Of Cash Receipts and
Disbursements (NCUA - 7002)

C-3

Form and Instructions For Completion Of Cash Flow Projections (NCUA - 7003)

C-3

Form and Instructions For Completion of Seasonal Flow Computation - (NCUA - 7004)

C-3

1

C-3

NCUA CENTRAL LIQUIDITY FACILITY
REGULAR MEMBER FACILITY ADVANCES
OVERVIEW
The National Credit Union Administration Central Liquidity Facility (“Facility”) was created by the
National Credit Union Central Liquidity Facility Act. The Facility is a “mixed ownership
Government corporation” within the National Credit Union Administration. It is an instrumentality
of the Federal Government owned by its member credit unions and managed by the NCUA
Board. The purpose of the Facility is to improve the general financial stability by providing credit
unions with a source of loans to meet their liquidity needs and thereby
encourage savings,
support consumer and mortgage lending, and provide basic financial resources to all segments
of the economy. CLF was created by Congress in 1979 because credit unions needed their
own source of funds to meet their liquidity needs in the same way that the
Federal Reserve
System “discount window” provided access to loans for banks. Barriers to last-resort liquidity
have changed favorably over time (e.g., credit unions who qualify may now borrow
from the
Federal Reserve discount window) but the CLF continues to be
an important major back-up
source of liquidity for both Federal- and state-chartered credit unions.
The purpose of this operating circular is to provide basic information
regarding the lending
procedures of the CLF with respect to its R egular members. These procedures implement the
basic framework provided in Title III of the Federal Credit Union Act (12 U.S.C. § 1795) and Part
725 of the NCUA Rules and Regulations (12 C.F.R. § 725).
All Facility advance applications will be reviewed by a designated Facility loan officer (FLO).
Relevant contacts and phone numbers are provided in Appendix A. The final approval process
for Facility advances is the direct
responsibility of the Central Liquidity Facility which is
administered within the NCUA Office of Capital Markets and Planning and
managed by the
NCUA Board. The following delegation and concurrence
information applies to the final
approval of all Facility advances:

Loan
Characteristics
$0 < Loan Amount <= $10 Million
Loan Amount > $10 Million
Any Loan Maturity Longer than 2
Years

Delegated
Authority

Concurring Officials
Required

CLF
President

Regional
Director/SSA

√
√
Must be approved by the NCUA Board
Must be approved by the NCUA Board

Operations for Facility advances and other matters dealing with the Facility are located on the
seventh floor of NCUA’s central office at 1775 Duke Street in Alexandria, Virginia.

2

1. MEMBERSHIP
A Regular member of the facility has become a member by: a) submitting an application for
Regular membership to the Facility and, b) subscribing to capital stock of the Facility as set forth
in NCUA Rules and Regulations
§ 725.3 (a). This applies to federal,
state-chartered and
privately insured credit unions.
2. REQUESTS FOR FACILITY ADVANCES
A Regular member may submit an application for a Facility advance several ways. To initiate
an advance, a Regular member must communicate its intent to borrow and it can either:
1. Mail, courier, or otherwise hand-deliver a physical notice of intent to borrow
(completed
NCUA forms No. 7000, 7001, 7002, 7003, and 7004).
2. Send a facsimile (fax) of the above listed forms; or,
3. Call CLF directly by telephone and/or communicate by an electronic mail message (email)
via the Internet of its intent to borrow and subsequently deliver the above listed forms as
soon as practicable.
As indicated in option three above, emergency circumstances allow
for a member’s Facility
advance application to be verbal but a verbal
request must be confirmed within five working
days by delivering a complete application as required by 12 C.F.R. § 725.17 (c).
All phone, fax and email requests must promptly be followed by delivery of the original complete
application(s) to the Facility. Relevant contacts, phone numbers, addresses and related
information are included in Appendix A.
In cases where the member cannot establish contact with the Facility, a member should attempt
to deliver its application, e.g., by one of the means indicated above, to its NCUA regional office
which, in turn, will communicate the request to CLF. In all cases, the official
Facility process
time begins when the application is received by Facility personnel and logged in.
3. REQUIRED DOCUMENTATION
A Regular member must have an executed NCUA Central Liquidity Facility Repayment, Security
and Credit Reporting Agreement on file with the Facility prior to submitting, or included with, an
application for a loan (see Appendix C for sample forms).

Form Name and Number
1

2

3

Form Description

Request for Funds from
National Credit Union Central
Liquidity Facility
(Form - 7001)
Statement of Cash Receipts
and Disbursements
(Form - 7002)

Detailed application. Form must be completed for each
loan request.

Form Name and Number

Form Description

Cash Flow Projections
(Form - 7003)

Form must be completed with each request
except
seasonal requests. Detailed schedule of actual cash
flow receipts and disbursements for most recent 4
monthly periods (including “current” month).
Form must only be completed if total advances
outstanding plus current request equals or exceeds

3

4.

Seasonal Flow Computations
(Form - 7004)

$250,000. Detailed schedule of projected cash flow
receipts and disbursements for next seven monthly
periods (including “current” month).
Form must be completed by credit unions applying for
credit to meet annual recurring seasonal flows.

4. LIQUIDITY NEED JUSTIFICATION
A Regular member may apply for an extension of credit from the Facility only
for liquidity
purposes and any application must include or adequately reference some demonstrable
evidence that the institution meets the statutory meaning of “liquidity needs” (see 12 U.S.C.
§ 302( 1) of the FCU Act). The Facility will not approve an application for credit the intent of
which is to expand credit union portfolios. We believe this means, for example, that the liquidity
loan cannot be used to fund new investments or new loan product offerings.
5. CREDITWORTHINESS
The credit assessment of loan applications is conducted by a Facility loan officer
(FLO). The
primary responsibilities of a FLO are to:
1. Verify purpose of the request is a legitimate liquidity-need loan (see preceding section on
“liquidity loan justification”);
2. Ensure each applicant’s creditworthiness is acceptable and that the Facility only makes
sound loans; and,
3. Submit final assessment to approving author ity with a recommendation to approve or deny
the request.
In those cases where the Facility has direct responsibility to make a credit underwriting
decision, it considers various financial information
to evaluate creditworthiness.
This
information includes, but is not limited to, the following:
1. Stated purpose of the loan;
2. Borrower’s plan to repay the loan;
3. Borrower’s current financial condition, based on information from such sources as Call
Reports, and Financial Performance Reports (FPR);
4. Statutory limitations on borrowing.
The stated purpose of the loan is especially important since
it relates to the statutory and
regulatory “liquidity need” justification discussed in the previous section. In addition to the CLF
President, the regional director and the state supervisory authority, in the case
of state
chartered credit unions, will also evaluate borrowing-need circumstances to make sure that the
liquidity need is consistent with CLF’s intended purpose and that the underlying reasons for the
liquidity need do not constitute grounds for a material safety and soundness concern.

4

FLOs will place greater emphasis and reliance upon information which is most current. They
are not limited to base a credit decision solely upon a set list nor are FLOs required to collect all
of the information referenced above before making a final recommendation (a best-effort will be
made subject to availability of information).
A sound loan is defined as a loan made to a responsible credit union which has a favorable
operating record, financial history, and management with established integrity and competence
or, in the case of a new credit union, reasonable assurance that these factors are present. A
natural person credit union which does not meet the Facility creditworthiness standards may be
limited or denied the use of Facility advances for its liquidity needs.
§ 725.18 of the NCUA Rules and Regulations states
that prior to Facility approval of each
application of a Regular member for a Facility advance, the Facility
shall consider the
creditworthiness of such member. NCUA Rules and Regulations § 725.18 (c) lists the following
characteristics as “uncreditworthy”:
Characteristics of Uncreditworthy Institutions
1 Insolvency as defined by Section 700.1(k)
2 Unsatisfactory practices in extending credit
3 Lower than desirable reserve levels
4 High expense ratio
5 Failure to repay previous Facility advances as agreed
6 Excessive dependence on borrowed funds
7 Inadequate cash management policies and planning
than satisfactory
8 Other relevant characteristics creating a less
condition
A credit union which fails to meet CLF creditworthiness standards may qualify for emergency
assistance from the NCUSIF as provided under § 208 of the FCU Act. § 208 assistance is
generally provided to an institution in extraordinary circumstances where the institution may be
“in danger of failing” without the assistance. Credit unions must request § 208 assistance from
the NCUA regional director.
6. PRIORITY OF FACILITY ADVANCE REQUESTS
Neither Title III of the FCU Act nor Part 725 of the NCUA Rules and Regulations provides for
any borrower priority. All loan requests, Regular or Agent member, are handled on a first-come,
first-served basis regardless of membership type or loan amount.

5

7. PROCESSING TIME FOR FACILITY ADVANCES
The NCUA Board is required to approve or deny any application for a Facility advance within
five working days after receiving it per 12 U.S.C. §306 (a)(1). However, the Facility will make a
decision on each Advance request as soon as practic able; not to exceed five working days. A
loan application will only be considered “in-process” when it is complete and has been officially
logged by the Facility. Exceptions to this procedure must be approved by the CLF President
and will only be considered in emergency circumstances.

8. SOURCES OF FACILITY FUNDS
The Facility has several sources of funds which it can use to fund Facility advances to its
members. Limitations exist on the amount of funds available from each source. To balance its
limitations on funding sources against its need to expeditiously respond to urgent and high
priority requests, the Facility generally will seek to maintain a
minimum (target) balance in its
operating account while funding each new request for funds first
with advances from the
Federal Financing Bank (FFB). Each underlying loan which serves as the basis for an Agent
request for funds will be match-funded by an FFB advance with the same
settlement and
payment characteristics. The target balance of the operating account will
be maintained at a
level determined by the Facility from time to time but not at a level that exceeds the sum of its
retained earnings plus the paid-in stock subscriptions of its Regular members. If used to fund
advances, the operating account will be replenished to its target level as soon as practicable.
The operating account will be used as the primary immediate source of funds for borrowers who
cannot afford the potential delay associated with an FFB-funded Facility advance (see table
below).
Delivery and Timing of Delivery of Advance Requests from FFB1 to CLF
Requested Advance
Amount
Up to $500 million

Advance Notice Requirement

Request must be received on or before the
third Business Day before the Advance
date specified
Between $500 million and Request must be received on or before the
less than $2 billion
fifth Business Day before the Advance date
specified
Equal to or greater than Request must be received on or before the
$2 billion
tenth Business Day before the Advance
date specified

Maximum Time
Lag2
(Business Days)
3
5
10

Among the powers of the Board when acting on behalf of the CLF is the ability to borrow from
any source, provided that the total face value of these obligations shall not exceed twelve times
the subscribed capital stock and surplus of the Facility (see 12 U.S.C. §307(4)(a)). To mitigate
1

The Facility borrows funds from the FFB and is subject to the borrowing terms set forth in a Note Purchase
Agreement between the FFB and NCUA. The “Delivery and Timing of Delivery of Advance Requests from FFB”
provided in this table are a contractual feature of the Note.
2
The FFB will make an advance as soon as practicable after the Advance Request is received but not later than the
tenth business day when aggregate Advances outstanding exceed $2 billion.

6

the delay-of-funds risk from the FFB’s potential timing of delivery of funds (the potential 3 to 10
day lag), the CLF has the flexibility to borrow from an alternative source to cover the lag period if
the need for funds is immediate at the time of request. Such an arrangement would only be
established in emergency circumstances where the amount of the request for funds exceeds the
CLF’s operating account balance.
See Appendix B for a chart of the Facility advance loan process.

9. DISBURSEMENT OF FACILITY ADVANCES
A Regular member must complete a Request For Funds form (NCUA - 7001) as part of its
application to the Facility. The credit union’s delivery instructions for the Facility advance must
be provided at the time of the application. These instructions can be included in a cover letter
accompanying the application or be provided in the “Comments” section of the Request For
Funds form at the bottom of page two. The Facility can either wire transfer the funds or issue a
draft.
For wire transfers, the following information is required:
1. routing and transit number (ABA#) of the depository institution accepting the funds;
2. depository institution’s name; and,
3. name of beneficiary (Regular member) and account number.
For a draft, the following information is required:
1. name of beneficiary (Regular member); and
2. address of beneficiary.

10. RATES ON FACILITY ADVANCES
To fund an Advance, the Facility may either borrow from any source or lend from its own readily
available liquidity. All advances by the Facility to a Regular member will reflect a loan rate
based on the Facility’s costs3. For example, loan rates from the FFB to CLF are presently
based upon the current average market yield on outstanding obligations of the United States
with remaining time to maturity of such loan. The FFB obtains its rate from the U.S. Treasury.
The shortest Treasury maturity used by Treasury for pricing loans is the most recently auctioned
13 week Treasury (91 day T-Bills). Other sources of funds may be utilized by CLF and could
result in a rate substantially different than the standard FFB arrangement.
The following provisions apply to Advances from the FFB to CLF used to fund Facility advances.
Computation of Interest on FFB-funded Advances
a) Interest on the outstanding principal of each Advance shall accrue from the date on which
the respective Advance is made to the date on which such principal is due.
b) Interest on each Advance shall be computed on the basis of (1) actual days elapsed from
(but not including) the date on which the respective Advance is made to (and including) the
date on which the payment of interest is next due; and (2) a 365 day basis.
c) The interest rate for each FFB advance shall be established by FFB, at the time the
respective advance is made, on the basis of the determination made by the Secretary of the
3

Rates on Facility Advances may include a fee adequate to cover all Facility expenses and to provide for
the accumulation of reasonable contingency reserves.

7

Treasury4; provided, however, that the shortest maturity used as the basis for any rate
determination shall be the remaining maturity of the most recently auctioned 13-week United
States Treasury bills.
Payment of Interest; Interest Payment Dates on FFB-funded Advances
a) Interest accrued on the outstanding principal amount of each
Advance shall be due and
payable as follows:
b) if the Maturity Date for the respective Advance is a date that occurs on or before that date
which is 6 months after the date on which such Advance is made, interest shall be payable
on such Maturity Date; and
c) if the Maturity Date for the respective Advance is a date that occurs (1) after that date which
is 6 months after the date on which such Advance is made, and (2) on or before that date
which is 12 months after the date on which such Advance is made, interest shall be payable
on that date which is 6 months before such Maturity Date (such date being the
“Interest
Payment Date” for the respective Advance) and on such Maturity Date.
Repayment of Principal
The outstanding principal amount of each Advance shall be due and payable on the Maturity
Date for the respective Advance.
Refunding (rollover of an Advance).
CLF may reborrow (rollover) a part or all of a maturing Advance. Notice of intent to rollover
all or part of an Advance must be given to FFB at least three business days before the new
requested Advance date (3 business days prior to maturity). The new rate on the
reborrowed amount will be set by FFB (Treasury) on the new Advance date.
Repurchases (prepayments of an Advance).
CLF may elect to repurchase (prepay) all or any portion of the outstanding principal amount
of an FFB Advance. CLF must deliver to FFB written notification of each prepayment stating
(1) the date of prepayment, and (2) the amount of principal of the respective Advance. A
prepayment notice must be received by FFB
five business days prior to the intended
prepayment date. CLF shall pay FFB a prepay ment amount equal to the sum of: (A) the
price for such Advance that would, if such Advance (including all unpaid interest accrued
through the intended prepayment date) were purchased by a third party and held
to the
originally scheduled maturity date, produce a yield to the third-party purchaser for the period
from the date of repurchase to the originally scheduled maturity date substantially equal to
the interest rate that would be set on a such a loan by the FFB (Treasury); and, (B)
all
unpaid late charges (if any) accrued on such Advance through the intended prepayment
date. The prepayment amount shall be calculated by the Secretary of the Treasury as of the
close of business on the second Business
Day before the intended prepayment date.
Minimum Repurchase amount is limited to $100,000 of principal.
A Regular member may make a prepayment in
any amount at any time provided sufficient
notice time is given (five business days). However, the Facility shall impose on any such
prepayments, a prepayment cost equivalent to any resultant prepayment cost incurred by the
Facility.
In the event that any payment of any amount owing under the Facility advance is not made
when and, as due, results in a late charge on a corresponding FFB advance, the late charge
assessed by the FFB against CLF shall be in turn assessed against the credit
union. Each
payment under a Facility advance shall be made in immediately available funds by electronic
funds transfer for credit to the CLF’s operating account with US Central.
4

Pursuant to section 6(b) (12 U.S.C. § 2285(b)) of the Federal Financing Bank Act of 1973, as amended
(12 U.S.C. § 2281 et seq.) (the “FFB Act”).

8

11. COLLATERAL REQUIREMENTS
By regulation, each Facility advance must be secured by a first priority security interest in assets
of the borrowing natural person credit union. Such assets must have a net book value of
at
least 110% of all amounts due under the applicable Facility advance, or by guarantee of the
National Credit Union Share Insurance Fund.
See also 12 CFR § 725.19 (a) and (c) and the
NCUA Central Liquidity Facility Repayment,
Security And Credit Reporting Agreement (see Appendix C-1).

12. CONFIRMATIONS
Specific terms of a Facility advance, such as the date of the advance, amount of the advance,
the interest rate, the principal repayment date or dates (if any), the principal amount
due on
each such principal repayment date (excluding interest), the interest payment dates (if any), and
the maturity date will be specified in a confirmation to the Regular member at the time each
advance is made.

9

Appendix A-1

CLF and National Credit Union Administration Contacts
CENTRAL LIQUIDITY
FACILITY
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6391
(703) 518-6429 FAX

OFFICE OF EXAMINATION
AND INSURANCE
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6360
(703) 518-6499 FAX

OFFICE OF CORPORATE
CREDIT UNIONS
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6640
(703) 518-6439 FAX

REGION I - ALBANY
9 Washington Square
Washington Ave. Extension
Albany, NY 12205
(518) 862-7400
(518) 862-7420 FAX
CT, ME, MA, MI, NH, NY, RI,
VT

REGION II - CAPITAL
1775 Duke Street
Suite 4206
Alexandria, VA 22314-3437
(703) 519-4600
(703) 519-4620 FAX
DE, DC, MD, NJ, PA, VA,WV

REGION III - ATLANTA
7000 Central Parkway
Suite 1600
Atlanta, GA 30328
(678) 443-3000
(678) 443-3020 FAX
AL, FL, GA, IN, KY, MS, NC,
PR, SC, TN, VI

REGION IV - AUSTIN
4807 Spicewood Springs Rd.
Suite 5200
Austin, TX 78759-8490
(512) 342-5600
(512) 342-5620 FAX
AR, IL, IA, KS, LA, MN, MO,
NE, ND, OK, SD, TX, WI

REGION V - TEMPE
1230 West Washington Street
Suite 301
Tempe, AZ 85281
(602)302-6000
(602) 302-6024 FAX
AK, AZ, CA, CO, GU, HI, ID,
MT, NV, NM, OR, UT, WA, WY

AMAC -Asset Management &
Assistance Center
4807 Spicewood Springs Rd,
Suite 5100
Austin, TX 78759-8490
(512) 231-7900
(512) 231-7920 FAX

10

Appendix A-1

Corporate Credit Unions
Thomas D. Bonds, President
Corporate America Credit Union
4365 Crescent Road
Irondale, AL 35210-1774
(800) 292-6242
(205) 313-4300 FAX

Greg Moore, President/CEO
Georgia Central Credit Union
2400 Pleasant Hill Rd., Suite 300
Duluth, GA 30136
(770) 476-9704
(770) 476-1593 FAX

Peter Pritts, President
First Corporate Credit Union
2 North Central Avenue, Suite 700
Phoenix, AZ 85004
(602) 322-2466
(602) 322-2402 FAX

Tom Kuehl, Manager
Iowa Corporate Central Credit
Union
3737 Westown Parkway, Suite D
P.O. Box 8388
Des Moines, IA 50301
(515) 223-7390
(515) 226-7952 FAX
Joseph Herbst, President/CEO
Members United Corporate
Federal Credit Union
4450 Weaver Parkway
Warrenville, IL 60555-3926
(630) 276-2600
(630) 276-2707 FAX

Robert A. Siravo, President/CEO
Western Corporate Federal Credit
Union (WesCorp)
924 Overland Court
San Dimas, CA 91773-1750
(909) 394-6300
(909) 394-6338 FAX
Thomas R. Graham, President/CEO
Sun Corp Corporate Credit Union
11080 Circle Point Road, Suite 500
Westminster, CO 80020
(720) 540-4600
(303) 428-6183 FAX
Robert T. Nealon, President/CEO
Constitution Corporate Federal
Credit Union
P.O. Box 5024
Wallingford, CT 06492-7524
(203) 697-6000
(203) 294-6121/22 FAX
Bill Birdwell, President
Southeast Corporate Federal Credit
Union
P.O. Box 3008
Tallahassee, FL 32315-3008
(850) 576-3607
(850) 576-3714 FAX

Francis Lee, Manage/CEO
U.S. Central Credit Union
9701 Renner Blvd., Suite 100
Lenexa, KS 66219
(888) 872-0440
(913) 227-6260 FAX
Agent Group Representative
Larry Eisenhauer, President/CEO
Kansas Corporate Credit Union
8615 West Frazier
Wichita, KS 67212
(800) 721-2677
(316) 722-2025 FAX

David A. Savoie, President/CEO
Louisiana Corporate Credit Union
3500 North Causeway Blvd.,
Suite 1510
Metairie, LA 70002
(800) 421-7030
(504) 838-8822 FAX
Jane C. Melchionda, President
Eastern Corporate Federal Credit
Union (EasCorp)
35 Corporate Dr.
Suite 300
Burlington, MA 01803
(781) 933-9950
(781) 933-6476 FAX
Stephen A. Roy, CEO
TRICORP Federal Credit Union
2 Ledgeview Drive
Westbrook, ME 04092
P.O. Box 1429
Portland, ME 04104
(207) 761-0774
(207) 761-0873 FAX
William Walby, President
Central Corporate Credit Union
20800 Civic Center Drive
P.O. Box 5092
Southfield, MI 48086-5092
(248) 351-2100
(248) 356-6965 FAX
Dennis DeGroodt, CEO
Missouri Corporate Credit Union
2055 Craigshire Drive
St. Louis, MO 63146-4009
(314) 542-0555
(314) 542-1347 FAX

Jim Thompson, President
Kentucky Corporate Federal Credit
Union
3615 Newburg Road
Louisville, KY 40218-3399
(502) 459-6110
(502) 459-8027 FAX

James Hanson/CEO
Vacorp Corporate Federal Credit
Union
107 Leroy Bowen Drive
Lynchburg, VA 24502
(434) 237-9640
(434) 239-8148 FAX

11

Appendix A-1

Corporate Credit Unions
Steve D. Howke, President/CEO
Treasure State Corporate Credit
Union
1236 Helena Avenue
Helena, MT 59601-2990
(406) 442-9081
(406) 442-9085 FAX
David W. Brehmer, President
First Carolina Corporate Credit
Union
4160 Piedmont Parkway
P.O. Box 49379
Greensboro, NC 27419-1379
(800) 822-8859
(800) 828-0713 FAX
Doug Wolf, President/CEO
Midwest Corporate Federal Credit
Union
P.O. Box 7250
Bismarck, ND 58507
(701) 258-5760
(701) 223-2654 FAX

Edward Fox, President
Mid-Atlantic Corporate Federal
Credit Union
1201 Fulling Mill Road
Middletown, PA 17057
(800) 622-7494
(717) 985-3435 FAX
Rick Veach, Acting President/CEO
Volunteer Corporate Credit Union
2460 Atrium Way
Nashville, TN 37214
(615) 232-7900
(615) 232-7999 FAX
John Cassidy, President/CEO
Southwest Corporate Federal Credit
Union
7920 Belt Line Road
Suite 1100
Dallas, TX 75254-8100
(972) 861-3000
(972) 861-3349 FAX

12

Robert Fouch, Manager/CEO
Corporate Central Credit Union
P.O. Box 469
Hales Corners, WI 53130-0469
(414) 425-5555
(414) 427-3700 FAX
Charlie Thomas, Manager/CEO
West Virginia Corporate Credit
Union
411 Cedar Grove Road
P.O. Box 209
Parkersburg, WV 26102-0209
(304) 485-4563
(304) 485-4503 FAX
Lee Butke, President
Corporate One Federal Credit
Union
8700 Orion Place
Columbus, OH 43240
(800) 282-2560
(614) 825-9202 FAX

1Appendix B-1

NO

CLF
Regular
Member

CLF
Analyst

Request For Funds

Is Application
Complete?

NO

YES
Final Review &
Concurrence:
CLF/RD

Is Loan
Approved?

Facility Loan
Officer Review &
Recommendation

YES

Is Funding

Advise Regular
Member Facility
is "Full"

NO

Available?
YES
Disburse funds
to Regular
Member

Issue
Confirm

13

Log Out

OMB Control #: 3133-0061

APPENDIX C-1

INSTRUCTIONS FOR COMPLETING THE APPLICATION AND AGREEMENTS
FOR REGULAR MEMBERSHIP IN THE NCUA CENTRAL LIQUIDITY FACILITY
PART A
Item No.
4

5,6

Instructions/Remarks

Item No.

Enter Your credit union’s charter number if federally
chartered or National Credit Union Share Insurance Fund
(NCUSIF) certificate number if federally insured.. Leave
blank if your credit union is neither federally chartered nor
insured by the NCUSIF.
Enter the name and telephone number (including area
code) of the individual to be contacted regarding Central
Liquidity Facility (the Facility) matters. The individual
named should be a person authorized to transact business
with the Facility.

7

Enter the date this application is prepared. Use a six digit
numeric designation: for example, August 10, 1998 would
be entered as 08/10/98.

8

Check the appropriate block to indicate insurance status of
your credit union. If member shares are insured by the
NCUSIF, check block (a). If member shares are insured by
a share insurance program other than NCUSIF, check
block (b). If member shares in your credit union are
uninsured, check block (c).

9

If block 8(b) is checked, enter the name of the share
insurance program which insures your members’ shares.

10

Enter the name and address and ABA routing number of
the financial institution used by the credit union as its
depository and record the credit union’s account number at
that depository.

If the stock subscription calculated in the above manner
results in an answer of less than $50.00, then your credit
union’s stock subscription shall be $50.00. This is
required by section 305(a) of the Act.
13

Section 305(d) of The Act requires that at least 1/2 of the
stock subscription amount must be paid to the Facility.
The remainder must be held on call and shall be invested in
assets designated by the Facility’s Board. The amount of
funds that must accompany this application when it is
submitted to the Facility is computed by dividing the dollar
amount of the stock subscription reported in item 12 by 2.
In our foregoing example where the stock subscription was
$126, the credit union would be required to enclose with its
application $63 ($126 ÷ 2). Checks should be made
payable to the “Central Liquidity Facility”.

14

If your credit union is a member of one or more corporate
credit unions, list the names of all those corporate credit
unions of which your credit union is a member.

PART B
The Facility is permitted to lend to credit unions primarily
serving natural persons, only to meet liquidity needs as
specified in The Act. To ensure that Facility loans are used
by Regular members for those purposes permitted by The
Act. The Facility will need to have access to certain
records of the Regular member and will require certain
record keeping. This section contains a series of
agreements that will provide the Facility with the necessary
access to information.

11(a),(b) On line (a) enter the date and requested data for the most
recent month end preceding the date of this application.
On line (b) enter the date and requested data of the month
end which is 6 months prior to the month in item 11(a).
11(c)

Total columns (1), (2), (3), (4), (5) and (6) .

11(d)

Divide the total at 11(c)(6) by 2, to arrive at the arithmetic
average of paid-in and unimpaired capital and surplus for
this 6 month period. The amount of your credit union’s
initial Facility stock subscription is based upon this
average value in accordance with Section 304(c)(1), the
CLF portion of Title III of the Credit Union Act (The Act).

12

The capital stock subscription for your credit union is equal
to ½ of one percentum of the average paid-in and
unimpaired capital and surplus from item 11(d) above.
To determine the amount of your credit union’s Facility
stock subscription multiply the average paid-in and
unimpaired capital and surplus from item 11(d), by .005
and round the resultant answer to the nearest whole dollar.
For example, if the value reported in item 11(d) were
$25,245.00, the figure to report in item 12 would be
computed as follows:
$25,245.00
X .005
126.225
($126.225 rounded to the nearest whole dollar equals $126

Instructions/Remarks

3a

This section requires that the credit union attach certain
supporting documents to the application. The documents
requested are those which are routinely prepared at month
end by credit unions.

3B

If your credit union is state chartered, attach a copy of your
credit union’s charter and by-laws.
PART C

Any supporting documents submitted with this
application are to be identified by schedule number
beginning with 1 (one) and numbered consecutively.
All schedules should be listed in Part C.
Prior to submitting this application, the resolutions
contained in part C must be adopted by the credit union’s
board of directors.

CLF-8702
Revised 5/15/98
1 of 4
***The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid control number.
Estimated time to complete this form is ½ hour.

APPENDIX C-1
APPLICATION AND AGREEMENTS FOR REGULAR MEMBERSHIP IN THE
NATIONAL CREDIT UNION CENTRAL LIQUIDITY FACILITY
PART A - GENERAL INFORMATION
Items 1 thru 10 are designed for computer data entry. Please do not use more than the allotted number of characters.
(The number in parenthesis after each title block of each item is the total number of allowed characters including spaces for that item.)
1.

4.

Credit Union Name (35)

2.
Street

8. In
9.

5.

Address (35)

3.
surance
Status:

City (20)

a.

c.
City

7.

Date of Application (10)
… Uninsured

NCUA Use Only
d.
e.

Address (35)
State

(20)

Contact Person (30)

6.
Zip Code (5)
Telephone Number (10)
b. … State Program
c.

State (2)
… Federally Insured

Name of Share Insurance Program
10. Local Depository Information:
a.
Name (35)
Depository
b.
Street

Charter/Insurance Certificate Number (5)

(2)

ABA Routing Number (9)
Account Number (15)

Zip Code (5)

11. Computation of six month arithmetic average of paid-in and unimpaired capital and surplus: (Account Numbers obtained from NCUA 5300 Call reports)
Line (a) DATE: ______________________ (Most recent month end figures): Line (b): DATE: ___________________ (Data for month end six months prior)
(1)
Shares - (018)

(2) (3
+

Other Reserves (658)

)
Net Gain
or (Loss) (602)

+

+

(4) (5
Undivided
Earnings (940)

+

)
Accum. Unrealized
Gains/Losses on AFS
Securities .(945)

=

(6)
Paid-in and
Unimpaired Capital
and Surplus

(a)
(b)
(c)

Total:

(d)

Arithmetic average of paid-in and unimpaired capital and surplus (Item (c) (6) ÷ 2)

12.

Amount of Facility shares (Item 11 (d) x .005)

$

13.

Amount enclosed with application (Item 12 ÷ 2)
(Round to nearest whole number)
Membership(s) in Corporate Credit Unions:

$

14.

$

Credit Union
Credit Union

Credit Union
IF YOU NEED HELP COMPLETING THIS APPLICATION PLEASE CALL 1-703-518-6391

OMB Control #: 3133-0061

NCUA Use Only
NCUA Use Only

CLF-8702

2 of 4
***The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid control number. Estimated time to complete this
form is ½ hour.

APPENDIX C-1
PART B - MEMBERSHIP AGREEMENTS AND SUPPORTING DOCUMENTS

1.
The above named credit union hereby applies for Regular membership in the Central Liquidity Facility (Facility) as provided in Title III of the
Federal Credit Union Act, and in consideration of the granting of Regular membership hereby agrees:
a.
To comply with the requirements of Title III of the Federal Credit Union Act and any regulations and reporting requirements which are
prescribed for Regular members by the NCUA Board pursuant thereto.
b.
To permit the NCUA Board or its designee to have access to any information or report with respect to any examination made by or for any
public regulatory authority, including any commission, board, or authority having supervisory responsibility over this credit union, and furnish
such additional information with respect thereto as the NCUA Board may require.
c.
To permit the NCUA Board or its designee to have access to all records and information concerning the affairs of this credit union
related to Facility activity and to furnish such information pertinent thereto that the Board may require.
d.
2.

To maintain records related to Facility activity in conformance with requirements prescribed by the NCUA Board from time to time.

I (We) understand that:
a.

The stock subscription represents an investment by this credit union in the Facility.

b.

The paid portion of the stock subscription will be recorded on the credit union's books as an asset.

c.

The unpaid portion of the stock subscription shall be held in cash, deposits in corporate credit unions with remaining maturities of 6 months or less, deposits in
federally insured banks and savings and loan associations with remaining maturities of 6 months or less, U.S. Government obligations (of a type authorized for
investment by Federal credit unions under 12 U.S.C. 175(7) with remaining maturities of 1 year or less, additional shares in the Facility and such other
investments as may be authorized from time to time by the NCUA Board.

d. The amount of the Facility capital stock subscription shall be adjusted at the close of each calendar year in accordance with an arithmetic average of the
unimpaired capital and surplus over a period specified by regulations.
e.

This credit union may withdraw from membership in the Facility subject to the following notification and waiting period:
(1).

A member of the Facility whose required capital stock subscription constitutes less than 5 per centum of such required stock
subscriptions outstanding , may withdraw from membership in the Facility six months after notifying the NCUA Board of its
intention to do so.

(2).

A member of the Facility whose required capital stock subscription constitutes 5 per centum or more of such required stock
subscriptions outstanding, may withdraw from membership in the Facility twenty-four months after notifying the NCUA
Board of its intention to do so.

f.

The NCUA Board may terminate our membership in the Facility if, after opportunity for hearing, it determines that we have failed to
comply with any provisions of the Central Liquidity Facility Act or regulation issued pursuant thereto.

g. Dividends will be paid on the paid-in portion of out Facility stock from available earnings at rates to be determined by the NCUA Board.
3.

The following required supporting documents are attached.
a.

Copies of our financial and statistical reports for the most recent month-end, including but not limited to:

(1).

b.

Balance Sheet
(2).

Statement of Income and Expense

(3).

Delinquent loan report showing the number and dollar amount of delinquent loans by delinquent categories (2 months to less
than 6 months, 6 months to less than 12 months, 12 months and over, or such other categories as may be required by the state regulatory authority.)

A copy of our credit union's charter and bylaws (not required for Federal credit unions)

OMB Control #: 3133-0061

CLF-8702
3 of 4

APPENDIX C-1
APPLICATION AND AGREEMENTS FOR REGULAR MEMBERSHIP IN THE
NATIONAL CREDIT UNION CENTRAL LIQUIDITY FACILITY
PART C - CERTIFICATIONS AND RESOLUTIONS
We, the undersigned, certify to the correctness of the information submitted. In support of this application we submit the Schedules described below:
Schedule No.

Title

Chief Elected Official

(Signature)
(Print or Type Officers Name)
(Signature)

Treasurer

(Print or Type Treasure's Name)

CERTIFICATIONS AND RESOLUTIONS
(Corporate Name of Credit Union)

(City)
(State)
We certify that we are the duly elected and qualified president (chief elected official) and secretary of said credit union and that at a properly called regular or special
meeting of its board of directors, at which a quorum was present, the following resolutions were passed and recorded in its minutes:
"Be it resolved that this credit union apply for Regular membership in the National Credit
Union Central Liquidity Facility as provided in Title III of the Federal Credit Union Act."
"Be it further resolved that the president (chief elected official) and treasurer be authorized
and directed to execute the APPLICATION AND AGREEMENTS FOR REGULAR MEMBERSHIP IN THE NCUA CENTRAL LIQUIDITY FACILITY and any other papers and
documents required in connection therewith and to pay all expenses and do all such things
necessary or proper to secure and continue such membership."
"Be it further resolved that the president/chairman or vice president/vice chairman and treasurer
or assistant treasurer (or their successors as authorized by resolution) are authorized to execute
notes and applications for advances from the National Credit Union Central Liquidity Facility
in such amounts as may be authorized from time to time by the board of directors of this credit union."
(Signature)

Chief Elected Official

(Print or Type Officers Name)
(Signature)
(Print or Type Secretary's Name)

OMB Control #: 3133-0061

CLF-8702
4 of 4

Secretary, Board of Directors

OMB 3133-0061

APPENDIX C-2

INSTRUCTIONS FOR COMPLETING THE NCUA CENTRAL LIQUIDITY FACILITY
REPAYMENT, SECURITY AND CREDIT REPORTING AGREEMENT FOR
REGULAR MEMBERS
CLF-8703

In order to elim inate the need to sign docum ents each tim e an advance is m ade, the Central Liquidity
Facility (Facility) requires each m ember to sign a repaym ent, security and credit repor ting agreement governing all
advances by the Facility
The enclosed agreem ent includes a promise t o repay al l advances, t he security agreem ent, and the other
loan terms which are known in advance. Other more specific terms, such as t he amount, interest rate, maturity and
the schedule of paym ents will be disclosed in a confirmation that will be sent to the borrowing credit union each
time an advance is m ade. The agr eement also includes a credit reporting agreement wh ich estab lishes rep orting
requirements to enable the Facility to obtain information concerning the status of its advances.
To properl y com plete t he agreem ent, t ype or pri nt t he dat a request ed at t he t op of page one and at the
bottom of t he last page. For t he line designated "Charter/Insurance Certificate Number" on page one; enter your
credit uni on's chart er num ber i f federal ly chart ered or Nat ional C redit Uni on Share Insurance Fund (NCUSIF)
certificate number if federally insured. Leave blank if your credit union is neither federally chartered nor insured by
NCUSIF.
The Chief Elected Official and t he Treasurer shoul d sign on t he lines provided on t he last page. Return a
original executed copy in the pre-addressed envelope. Retain a copy for the credit union's files.

CLF-8703
***The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid control number.
Estimated time to complete this form is 3 hours.
1 of 4

APPENDIX C-2
NCUA CENTRAL LIQUIDITY FACILITY REPAYMENT, SECURITY AND CREDIT REPORTING
AGREEMENT (Regular Member)
(Corporate Name of Credit Union)

Charter /Insurance Certificate Number

City

State

PARTIES
(1)
Effective date. This agreement is between the
National Credit Union Central Liquidity Facility (hereinafter
"the Facility") and a Regular member of the Facility
(hereinafter "the Member"). It becomes effective when signed
by the Regular member and the Facility and shall remain in
effect as long as the Regular member is a member of the
Facility or there is any unpaid repayment obligation created
hereunder between the Regular member and the Facility.
(2)
CLF Rules and regulations. All advances of
Facility funds to the Regular member are subject to the terms
and conditions of this agreement and to applicable terms and
conditions in the National Credit Union Central Liquidity
Facility Act, rules and regulations prescribed by the NCUA
Board on behalf of the Facility, and operating circulars issued
by the Facility, including all amendments and supplements
thereto. The Regular member shall perform each of the
obligations imposed on it by any such term or condition.

may be included, with or without other funds, in a single
transfer of funds from the Facility to the Regular member.
(4)
Loan application; use of funds. The Regular
member's application for a Facility advance must be filed on a
Facility-approved application form, or pursuant to any other
method approved by the Facility. Each advance of Facility
funds shall be used by the Regular member solely for the
liquidity needs for which funds were advanced, as specified in
the confirmation issued by the Facility in connection with the
advance. If funds were previously borrowed by the Regular
member from a party other than the Facility to meet the
liquidity needs for which Facility funds were advanced, the
advance of Facility funds may be used to repay the borrowed
funds.
(5)
Repayment obligation. When the Regular member
receives an advance of Facility funds, a repayment obligation
is created (herein a "repayment obligation created hereunder")
whereby the Regular member, for value received, agrees:
(i) to pay to the Facility on each principal
repayment date an amount equal to the principal amount due
on such principal repayment date plus unpaid interest from the
date of the advance through such principal repayment date;
and
(ii) to pay the Facility on each interest payment date
an amount equal to unpaid interest from the date of the
advance through such interest payment date; and
(iii) to pay the Facility on the maturity date an
amount equal to the unpaid balance of the amount of the
advance, if any, plus unpaid interest from the date of the
advance through such maturity date; and
(iv) if the amount due on the maturity date or any
principal repayment date or interest repayment date is not paid
on or before such date, to pay the Facility
(a) reasonable expenses of collection, including the
reasonable attorney's fees and expenses incurred, plus
(b) a late payment charge equal to 5% of the unpaid
balance of the principal amount due on such date, plus
(c) interest after such date on the unpaid balance of
the principal amount due on such date.
As used herein, unless the context otherwise requires, the date
and amount of the advance, the interest rate, the principal
repayment and interest payment dates, the principal amount
due on each such principal repayment date, and the maturity
date are the dates, amount and rate specified as such in the
confirmation issued by the Facility in connection with the
advance. Interest shall be determined hereunder as follows,

REPAYMENT
(3)
Confirmation. In connection with each advance of
Facility Funds to the Regular member, the Facility shall issue
a confirmation of credit (hereinafter the "confirmation") which
shall be sent to the Regular member. The confirmation may
be issued before or after the date of the advance and shall be
in such form and sent in such manner as may be determined
by the Facility. The confirmation shall specify:
(i) the date of the advance;
(ii) the amount of the advance;
(iii) the interest rate;
(iv) the principal repayment date or dates, if any;
(v) the amount due on each such principal
repayment date (excluding interest);
(vi) the interest payment date or dates, if any;
(vii) the maturity date; and
(viii) the types of liquidity needs for which the
Facility funds are advanced (i.e.. short-term
adjustment credit, seasonal credit, or protracted
adjustment credit);
(ix) the security given for the advance.
The confirmation may also specify the manner in which the
Regular member must pay the Facility on the maturity date. A
confirmation may be combined with other information,
including other confirmations, in a listing or other form of
communication. More than one advance of Facility funds

OMB Control #: 3133-0061

CLF-8703

APPENDIX C-2
using the interest rate specified as such in the confirmation:
(g) all proceeds of all such notes,
commencing on the date of the advance, interest shall accrue
instruments, monetary obligations,
each day on the unpaid balance of the amount of the advance,
chattel paper, securities, accounts,
and the unpaid interest from the date of the advance through
money and general intangibles.
any date shall be equal to accrued interest through such date
(7)
Perfection. The Facility shall have the right at any
less the portion of such accrued interest that has been paid
time to perfect the security interest granted hereunder with
prior to such date. The Regular member may make a
respect to any part or all of the collateral, either by filing or by
prepayment in any amount at any time. Each payment and
taking or retaining possession thereof. If perfection is by
each prepayment shall be applied first to any unpaid late
filing, the Regular member shall sign a financing statement
payment charge, then to unpaid interest through the date of the
and such other papers as may be appropriate for filing and
payment or prepayment, and then to the unpaid balance of the
shall pay all necessary filing fees. If perfection is by taking
amount of the advance. When the unpaid balance of the
possession, the Regular member shall take such action as may
amount of the advance is reduced as a result of a prepayment,
be necessary to transfer possession to the Facility, including
the principal amount due on the next succeeding principal
delivery to the Facility or its designee at the expense of the
repayment date shall be reduce by an amount equal to the
Regular member. The Facility may subordinate or terminate it
reduction in the unpaid balance of the amount of the advance.
security interest in any part of all of the collateral subject to
The Facility may waive any part or all of the interest or late
such terms and conditions as the Facility may impose.
payment charge. If the amount owed to the Facility on all
(8)
Third-party security interest. The Regular member
repayment obligations created hereunder become immediately
may not pledge or grant a security interest in any asset in
due and payable under the terms of this agreement, the
which a security interest is granted to the Facility under this
maturity date, as used herein, is the date such amounts become
agreement if, as a result, the net book value of the collateral
immediately due and payable or the date specified in the
would fall below 110% of the amount owed. The Facility
confirmation as the maturity date, whichever occurred first.
may at any time further restrict or prohibit the pledging or
The Regular member may make a prepayment in any
granting of security interests in the collateral or the borrowing
amount at any time provided, however, that the Facility shall
of amounts that are secured by any pledge or security interest.
impose on any such prepayment, a prepayment penalty
Except as stated in this paragraph, or as further restricted or
equivalent to any resultant prepayment penalty or cost
prohibited by the Facility, the Regular member may at any
incurred by the Facility.
time pledge or grant security interests in the collateral to
parties other than the Facility, including corporate credit
SECURITY
unions. The Regular member must report such security
(6)
Collateral. To secure the repayment obligation
interests to the Facility as follows: Each application of the
created by an advance of funds pursuant to this agreement, the
Regular member for Facility advance shall show the total
regular member grants the Facility a security interest (the
amount borrowed by the Regular member from sources other
“collateral”) as set forth below:
than the Facility and shall identify the types of assets, if any,
(i) a first priority security interest in the following
which the Regular member has pledged or subjected to a
described assets of the regular member having a
security interest in order to secure repayment of the amounts
net book value of at least 110% of the funds
borrowed. If there is an increase in the total amount borrowed
advanced., unless the advance is guaranteed by
from other sources, as shown in the application or any
the national Credit Union Share Insurance Fund
subsequent report, the Regular member shall report the
(NCUSIF):__________________________ ; OR
increase to the Facility within five business days after the
(ii) a security interest in all assets of the regular
increase occurs. The report shall show the total amount
member, including but not limited to:
currently borrowed from other sources (including the
(a) all notes, instruments, and other
increase) and shall identify the types of assets, if any which
monetary obligations (written or
the Regular member has pledged or subjected to a security
unwritten) which evidence or represent
interest in order to secure repayment of the amounts
right of the Regular member to the
borrowed. A report of the increase is not required if the
payment or repayment of money;
Regular member does not owe any amount to the Facility on
(b) all chattel paper, as defined in the
any repayment obligation created hereunder.
Uniform Commercial Code;
(9)
Acceleration and default. The amounts owed to the
(c) all securities (whether or not
Facility on all repayment obligations created hereunder shall
represented by instruments), including
become immediately due and payable to the Facility, without
shares in the capital stock of the
any demand or notice, upon:
Facility;
(i) the failure of the Regular member to perform
(d) all demand, time savings, passbook and
any of its obligations under this agreement,
loan accounts, including share accounts,
including failure to pay the amount due on any
maintained with a bank, savings and
maturity date, principal repayment date or
loan association, credit union or like
interest repayment under any repayment
organization;
obligation created hereunder; or
(e) money, as defined in the Uniform
(ii) the failure of the Regular member to pay any
Commercial Code;
other obligation to the Facility when due; or
(f) all general intangibles, as defined in the
(iii) the failure to comply with the terms of any
Uniform Commercial Code;¹ and
undertaking, statement or representation made
3 of 4

APPENDIX C-2
by the Regular member to the Facility in any
shall be paid or returned to the Regular member. If there is a
application, certification or other
deficiency, the Regular member shall be liable for the
communication; or
deficiency. If the Facility is indebted to the Regular member,
(iv) the insolvency of, or appointment of a trustee or
the Facility shall have the right to set-off such indebtedness
receiver for, the Regular member; or
against all amounts due the Facility on all repayment
(v) an assignment for the benefit of creditors of the
obligations created hereunder, without regard to when such
Regular member; or
indebtedness may be due and payable.
(vi) the closing or suspension or revocation of the
charter of the Regular member, or the taking
CREDIT REPORTING
possession of its business, by any governmental
(11)
Required reports. The Regular member shall file
authority; or
such reports and provide such information as may be required
(vii) the Regular member's use of the proceeds of
by the Facility from time to time.
any advance for a purpose other than the
liquidity needs for which the advance was
CONSTRUCTION AND MODIFICATION
made; or
(12)
Governing law. This agreement shall be construed
(viii) the withdrawal of the Regular member from
under and governed by the law of the Commonwealth of
membership in the Facility.
Virginia, including the Uniform Commercial Code as adopted
The occurrence of any of the events described in
and amended from time to time by the Commonwealth of
subparagraphs (9)(i) through (9)(viii) hereof shall constitute a
Virginia, and the terms used in such Code shall have the same
default under this agreement. The term "insolvency" in
meaning when used in this agreement. All references to the
subparagraph (9)(iv) hereof has the same meaning as in 12
Uniform Commercial Code in this agreement are to such Code
CFR 700.1 (j)(1). The Facility may waive a default under this
as adopted and amended from time to time by the
agreement and may reinstate the maturity date on any
Commonwealth of Virginia. Unless the context of this
repayment obligation created hereunder which becomes
agreement requires otherwise, the terms used in such Code
immediately due and payable as a result of any such default.
shall have the same meaning when used in this agreement.
(10)
Enforcement. Upon the occurrence of a default
Unless the Uniform Commercial Code or the context of this
under this agreement, or at any time thereafter, the Facility
agreement otherwise requires, the terms defined in the rules
shall have all the rights and remedies provided under the
and regulations prescribed by the NCUA Board on behalf of
Uniform Commercial Code and under this agreement,
the Facility shall have the same meanings when used in this
including but not limited to any one or more of the following:
agreement.
the Facility may (13)
Modification procedures. Thus agreement may be
(i) take or retain possession of the collateral, or any
modified from time to time by the NCUA Board. Any such
part thereof',
modifications shall be published in the Federal Register and
(ii) collect the proceeds of the collateral,
shall become a part of this agreement as of the effective date
(iii) notify obligors on the collateral to make
specified in the Federal register. The modification shall apply
payments to the Facility,
to all advances of Facility funds after such effective date. All
(iv) sell or otherwise dispose of any part or all of the
such modifications are a part of this agreement, including
collateral at public or private proceedings,
modifications that occurred prior to the signing of this
(v) buy the collateral or any part thereof, and
agreement.
(vi) retain the collateral, or any part thereof, in
(14)
Communication. Unless otherwise directed by the
satisfaction of any part of all of the obligations
facility, all applications, reports, notifications, and other
secured by the collateral.
communications from the Regular member to the Facility shall
The proceeds of the collateral, including the proceeds of sale
be filed with a Facility lending officer.
or other disposition thereof, shall be applied by the Facility
¹General intangibles are any personal property other than goods,
first to the reasonable expenses of collecting such proceeds
accounts, chattel paper, documents instruments or money.
and of taking, holding, and selling the collateral, including the
Examples of general intangibles are the right to receive payment
reasonable attorney's fees and legal expenses incurred, and
of a loan not evidenced by an instrument or chattel paper, rights
then to the payment of amounts due on all repayment
to performance, and business goodwill.
obligations created hereunder. Any surplus then remaining
Accepted By:
(Signature)

Chief Elected Official

(Print or Type Official's Name)
(Signature)
(Print or Type Official's Name)

(Signature)

Date Accepted
NCUA Central Liquidity Facility

(Date of Execution of this Agreement)
Treasurer

OMB Control #: 3133-0061

4 of 4

OMB 3133-0061

APPENDIX C-3

FORMS AND INSTRUCTIONS
FOR CLF LOANS
INSTRUCTIONS TO REGULAR MEMBERS AND AGENT MEMBERS FOR COMPLETION OF A
REQUEST FOR FUNDS FROM THE NATIONAL CREDIT UNION CENTRAL LIQUIDITY
FACILITY
INTRODUCTION
A Regular member may apply to the Facility for an extension of credit to meet its liquidity needs. This
request may be approved if the purpose of the request falls within on of the following categories:
A. Short-term adjustment credit available to assist in meeting temporary requirements for funds or to
cushion more persistent outflows of funds pending an orderly adjustment of credit union assets and
liabilities.
B. Seasonal credit available to assist in meeting seasonal needs for funds arising from a combination of
expected patterns of movement in share deposit accounts and loans.
C. Protracted adjustment credit (sometimes known as “long-term emergency credit”) available in the
event of unusual or emergency circumstances of a longer term nature resulting from national, regional
or local difficulties.
REQUEST FOR FUNDS
Enclosed are the forms a Regular Member may need in preparing a request for funds:
(1) Request for Funds from National Credit Union Central Liquidity Facility
− This form must be completed for each request for funds from the Facility. Each question on the form
must be answered. The supporting schedules or documents discussed in Item 11 of the form should be
attached to the Request for Funds when appropriate for the circumstances involved in the request. The
instructions in Item 11 should be followed closely to assure all required information is submitted.
Incomplete or missing data will delay processing of the request
(2) Statement of Cash Receipts and Disbursements (An equivalent form/report may be submitted.)
− To be submitted for requests with maturity over 90 days or if the repayment source cannot be clearly
explained in items 7 and 8. Information will be reported on the statement for receipts and
disbursements for the current month and the preceding 3 months.
(3) Cash Flow Projections (An equivalent form/report may be submitted.)
− To be submitted for requests with maturity over 90 days or if the repayment source cannot be clearly
explained in items 7 and 8. Projections will be provided for each month end through the maturity date
of the loan or for a 6-month period, whichever is less.
(4) Seasonal Flow Computations
− Complete this form if your credit union is applying for credit to assist in meeting annual recurring
seasonal flows. Completion of this form will assist in determining, (1) that your credit union has
experienced an annual recurring flow of funds, (2) the amount of the request, and (3) the time period
for which funds will be needed. Normally requests for seasonal loans will be filed at least 30 days
prior to the start of the period during which the funds will be needed.
FILING APPLICATIONS
− All Regular members of the CLF will file their requests at the following address:
National Credit Union Administration
Central Liquidity Facility
1775 Duke Street
Alexandria, VA 22314-3428
− Agent Members will file applications at the office of the Agent (corporate credit union).
Additional information or assistance in completing an application may be obtained by calling (703) 518-6391.
NCUA - 7000
Revised 5/10/95
1 of 10
***The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid control number. Estimated
time to complete this form is 1 hour.

OMB Number: 3133-0061

(For Internal Use only)
Application Number: ________________
Date Received::
________________
Received by:
__________________

APPENDIX C-3

REQUEST FOR FUNDS
NATIONAL CREDIT UNION CENTRAL LIQUIDITY FACILITY
1) Name of Credit Union:
2) Identification Number:

(Enter Charter/ Insurance number)

3) Person Requesting Funds:

(Must be person authorized by the Board of Directors to transact business with the Facility.)

4) Provide a complete statement of the specific PURPOSE for the request and the nature of the conditions which support
the purpose. Be specific and attach additional information or continue on another page:

5) Amount of Funds requested:
6) When do you expect to need the funds? (Provide a specific date or dates and amounts required on the stated dates if
funds are to be advanced over a period of time rather than in one lump sum):

7) When do you expect to repay the funds requested? (Provide a specific maturity period & date of expected payment.)
Maturity period:
Date to be repaid:
8) How will the loan be repaid? Provide the specific source of repayment and repayment plan. Attach additional sheet if
necessary.

9) Has the credit union agreed or committed to purchase any investments or loans?
of any such commitments including the date to be honored and amount.)

Yes

No

(Provide details

10) Categorize your borrowing from other sources on the following schedule. If your credit union issues promissory
notes to individual, lump the total dollar amount outstanding by maturity category.
Assets Pledged:
Book Value
Description
a. Maturity 180 days or less
$
$
b. Maturity 181 days to 1 year
$
$
c. Maturity greater than 1 year $
$
$
$
TOTALS

NCUA - 7001
Revised 5/10/95
2 of 10
***The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid control number. Estimated time to
complete this form is 1 hour.

APPENDIX C-3

11) Check additional information attached to this application which support the request. *Required with all requests
unless previously submitted to the CLF.
*

A financial statement, income & expense statement and statistical report
for the previous monthend and as of the monthend for the latest dividend
period. The total dollar amount of delinquent loans by categories 2-6, 612, and 12 months and over should be attached if not included on the
statistical report. (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 monthend.)

*

Resolution of the Board of Directors to borrow funds.

*

Note, security agreement, and credit reporting agreement.

whichever is less. An equivalent form/report may be submitted.

Seasonal Flow Computation. Will be provided for the 2 calendar
years prior to the year in which the request is made. Seasonal credit
requests will be made annual

Statement of cash receipts & disbursements. To be submitted for requests
with maturity over 90 days or if the repayment source cannot be clearly
explained in items 7 and 8. Information will be reported on the statement
for receipts and disbursements for the current month and the preceding 3
months. An equivalent form/report may be submitted.

12)

Cash Flow Projections. To be submitted for requests with maturity
over 90 days or if the repayment source cannot be clearly explained
in items 7 and 8. Projections will be provided for each monthend
through the maturity date of the loan or for a 6-month period,

Signature of Requestor

Title

(For internal use only)
Request

Denied

Approved

Type of credit:
Amount:
Maturity Date:
Reason:
By:
Date:

Comments:

OMB Number 3133-0061

3 of 10

Date

APPENDIX C-3

INSTRUCTIONS FOR COMPLETING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS NCUA 7002
This form will be completed with each request for funds except seasonal requests. Information should be reported for the
previous 3 months of operation and the current month to date. The form requests selected information pertaining to the categories of
cash receipts and disbursements and will be completed based upon information in the credit union’s Journal and Cash Record, and
General ledger. Total investment activity should be obtained from the credit union’s subcontrols for investments.
ITEM
NO.
1. Cash and Investments at the Beginning of the month - Represents the General ledger balance for the total of Cash, Petty Cash, any
Change Funds, and all Investments as of the first day of the month prior to transacting any business. Will be the same balance as
reported for the above accounts as of the previous month-end.
2.

Loan Repayments - Represents the total credit to the Journal and Cash Record for cash payments made by borrowers for each
month.

3.

Investments Liquidated - Represents the total credit to the Journal and Cash Record for investments disposed of or sold.

4.

Loans Sold or Participated Out - Represents the dollar amount of cash received for loans sold or participated out for the month.

5.

Deposits to Share Accounts - Represents the total credit less dividend credits to all types of share, share deposit and share certificate
accounts made during the month. Includes share draft account, retirement accounts and Christmas and vacation accounts.

6.

Borrowed Funds - Represents the total credits to Notes payable including any certificates of indebtedness issued during the month.

7.

Miscellaneous Receipts - Represents all other cash receipts not specifically mentioned above.

8.

Total Cash Receipts - Equals the total of items numbered 2 through 7 above. Should equal the total debit to cash for the month as
reflected in the credit union’s Journal and Cash Record and General ledger.

9.

Loans Extended - Represents the total dollar amount of loans granted during the month less the amount of any loan balances which
were refinanced.

10. Investments Purchased - Represents the total debit to the Journal and Cash Record for long-term investments purchased during the
month.
11. Loans Purchased or Participated In - Represents the total dollar amount of cash disbursed for the purchase of or participation in of a
partial or complete interest in loans under the provisions of section 701.21-3 of the NCUA Rules and Regulations or under State
statute permitting the purchase of or participation in, loans.
12. Share Withdrawals - Represents the total debit to all types of share, share deposit and share certificate accounts during the month.
Includes share draft accounts, public unit accounts, retirement accounts and Christmas and vacation accounts.
13. Operating Expenses - Represents the total debit to expense for the month less any amounts which are a result of a credit to
depreciation, prepaid or deferred expense accounts, the allowance for loan losses, or losses on the sale of investments or mixed
assets.
14. Repayment of Borrowed Funds - Represents the total debit to Notes Payable including any certificates of indebtedness which were
retired during the month.
15. Miscellaneous Disbursements - Represents all other cash disbursements not specifically included above.
16. Total Cash Disbursements - Equals the total of items numbered 9 through 15 above. Should equal the total credit to cash for the
month as reflected in the credit union’s Journal and Cash Record and General Ledger.
17. Cash and Investments at the End of the Month - Represents the total of the beginning balance (A), plus the total of Receipts (B),
less the total of Disbursements (C). Should equal the total of the General Ledger balance for Cash, Petty Cash, Change Funds, and
Investments at the end of the month.

OMB Number 3133-0061

4 of 10

APPENDIX C-3

Statement of Cash Receipts and Disbursements
NAME OF CREDIT
UNION:________________________________________________________________
Month Ending:

(3 months ago)

(2 months ago)

(Last month)

1. Cash & Investments beginning of month (A) $
RECEIPTS:
2. Cash Loan Repayments

$

3. Investments Liquidated

$

4. Loans Sold or Participated Out

$

5. Deposits to Share Accounts

$

6. Borrowed Funds

$

7. Miscellaneous Receipts

$

8.

$

TOTAL CASH RECEIPTS (B)

DISBURSEMENTS
9. Loans Extended

$

10. Investments Purchased

$

11. Loans Purchased /Participated In

$

12. Share Withdrawals

$

13. Operating Expenses

$

14. Repayment of Borrowed Funds

$

15. Miscellaneous Disbursements

$

16. TOTAL CASH DISBURSEMENTS (C)

$

17. Cash & Investments end of month (A+B-C) $

*Read instructions page prior to completing this form.
Report all dollar amounts rounded to nearest $1,000
Example: $1,213 reported as $1

OMB No. 3133-0061
5 of 10

(Current Month
to Date)

APPENDIX C-3

INSTRUCTIONS FOR COMPLETION OF CASH FLOW PROJECTIONS - NCUA 7003
Complete this form if your credit union’s total advances outstanding plus the current request equals or exceeds $250,000.
This form, when completed, reflects the projected receipts and disbursements for the current month and for each month
following the current month for the term of the loan, or for 6 months, which ever is less. The projection should consider the
impact of the requested CLF loan on the cash flow of the credit union. The result of the analysis should reflect that the credit
union will have sufficient funds available to repay the advance when it comes due.
Item
No.

1. Cash and Investments at the Beginning of the month - Represents the General Ledger balance for the total of Cash, Petty
Cash, any Change Funds, and all Investments as of the first day of the month prior to transacting any business. Will be
the same balance as reported or projected for the above accounts as of the previous month-end.
2. Loan Repayments - Represents the total projected credit to the Journal and Cash Record for cash payments made by
borrowers for each month.
3. Loans Sold or Participated Out - Represents the projected dollar amount of cash received for loans sold or participated
out for the month.
4. Deposits to Share Accounts - Represents the total projected credit less dividend credits to all types of share, share deposit
and share certificate accounts made during the month. Includes share draft accounts, retirement accounts and Christmas
and vacation accounts.
5. Borrowed Funds - Represents the total projected credits to Notes payable including any certificates of indebtedness
issued during the month and advances from the CLF.
6. Miscellaneous Receipts - Represents all other projected cash receipts not specifically mentioned above.
7. Total Cash Receipts - Equals the total of items numbered 2 through 6 above..
8. Loans Extended - Represents the total projected dollar amount of loans to be granted during the month less the amount
of any loan balances which will be refinanced.
9. Loans Purchased or Participated In - Represents the total projected dollar amount of cash disbursed for the purchase of or
participation in of a partial or complete interest in loans under the provisions of section 701.21-3 of the NCUA Rules and
Regulations or under State statute permitting the purchase of or participation in, loans.
10. Share Withdrawals - Represents the total projected debit to all types of share, share deposit and share certificate accounts
during the month. Includes share draft accounts, public unit accounts, retirement accounts and Christmas and vacation
accounts.
11. Operating Expenses - Represents the total projected debit to expense for the month less any amounts which result from a
credit to depreciation, prepaid or deferred expense accounts, the allowance for loan losses, or losses on the sale of
investments or mixed assets.
12. Repayment of Borrowed Funds - Represents the total projected debit to Notes Payable including any certificates of
indebtedness which will be retired during the month and any CLF loans.
13. Miscellaneous Disbursements - Represents all other cash disbursements not specifically included above.
14. Total Cash Disbursements - Equals the total of items numbered 8 through 13 above.
OMB Number 3133-0061

6 of 10

APPENDIX C-3

15. Cash and Investments at the End of the Month - Represents the total of the beginning balance (A), plus the total of
Receipts (B), less the total of Disbursements (C). Represents projected cash position at the end of each month and the
beginning cash and investment balance for the next month.

OMB Number 3133-0061

7 of 10

APPENDIX C-3

CASH FLOW PROJECTIONS
NAME OF CREDIT UNION:________________________________________________________________

Month Ending:_______________________

1234

567

(Current
Month)
1. Cash & Investments beginning of month (A)

$

RECEIPTS:
2. Cash Loan Repayments

$

3. Loans Sold or Participated Out

$

4. Deposits to Share Accounts

$

5. Borrowed Funds

$

6. Miscellaneous Receipts

$

7.

TOTAL CASH RECEIPTS (B)

$

DISBURSEMENTS
9. Loans Purchased or Participated In

$

10. Share Withdrawals

$

11. Operating Expenses

$

12. Repayment of Borrowed Funds

$

13. Miscellaneous Disbursements

$

14. TOTAL CASH DISBURSEMENTS (C)

$

15. Cash & Investments end of month (A+B-C)

$

*Read instructions page prior to completing this form.
Report all dollar amounts rounded to nearest $1,000
Example: $1,4,285,652 as $4,286

OMB Control # 3133-0061
8 of 10

APPENDIX C-3

INSTRUCTIONS FOR COMPLETION OF SEASONAL FLOW COMPUTATION - NCUA 7004
This workpaper will be completed by all credit unions applying for credit to meet annual recurring seasonal flows.
The form will be completed by entering the Share and Loan Account total balances for each month end during the two
calendar years prior to the year for which the current advance is being requested. The share balance will include all share
accounts and share certificate accounts. The loan balance will include all loans.
Net Funds Available Column
If the share account balance exceeds the loan account balance enter the difference with a plus (+) sign in front of the
number in this column. If the loan balance exceeds the share account balance enter the difference with a minus (-) sign in
front of the number in this column.
Seasonal Swing from Peak Column
First determine the largest balance of net funds available for any month during the calendar year. Next subtract from
this figure the amount listed in the Net Funds Available Column and enter the result in this column for each month during the
year. The result will either be zero (0) or less than zero (0) with a minus (-) sign appearing in front of the results which are
less than zero (0).
The following example demonstrates the proper method for completing this form for one year. Again, be certain to complete
the information for two (2) calendar years prior to the year for which the current advance is being requested.
Name of Credit Union:
Months
Ending
during 19 ____

SEASONAL FLOW COMPUTATION (EXAMPLE)

January

Share Account
Balances
(000 Eliminated)
$53‘ $43

Loan Account
Balances
(000 Eliminated)
’ $+-10

Net Funds
Available +/(000 Eliminated)
“ $0

Seasonal Swing
From Peak
(000 Eliminated)

February
March
April
May
June
July
August
Septem
October
Novem
Decem

52
52
40
48
48
46
47
48
50
54
52

42
42
45
46
46
47
48
48
45
44
42

+10
+10
+5
+2
+2
-1
-2
0
+5
+10
+10

0
0
-5
-8
-8
-11”
-12
-10
-5
0
0

ber
ber
ber

‘ Total share balances for January 1995, $53,353.
’ Total loan balances for January 1995, $42,960.
“ Largest balance of net funds available for any month during the calendar year.
” A seasonal trend is reflected by the decreasing amount of net funds available during the period from April through August
and then an increase in the amount of net funds available from September through November. If a similar trend were
reflected by 1994 data the credit union would be in a position to support a request for seasonal credit.

OMB Number 3133-0061

Revised 5/10/95
9 of 10

APPENDIX C-3

SEASONAL FLOW COMPUTATION
NAME OF CREDIT UNION:______________________________________________________
Months
Ending
during 20
____
January

Share Account
Balances
(000 eliminated)

Loan Account
Balances
(000 eliminated)

Net Funds Available
+/(000 eliminated)

Seasonal Swing from

Share Account
Balances
(000 eliminated)

Loan Account
Balances
(000 eliminated)

Net Funds Available
+/(000 eliminated)

Seasonal Swing from

Peak (000
eliminated)

February
March
April
May
June
July
August
September
October
November
December
Months
Ending
during 20
____
January

Peak (000
eliminated)

February
March
April
May
June
July
August
September
October
November
December

*Read instructions page prior to completing this form.
Report all dollar amounts rounded to nearest $1,000
Example: $1,582 as $2

OMB Control # 3133-0061
10 of 10