Part 725 contains the regulations implementing the National Credit Union Central Liquidity Facility Act, subchapter III of the Federal Credit Union Act. The NCUA Central Liquidity Facility is a mixed-ownership Government corporation within NCUA. It is managed by the NCUA Board and is owned by its member credit unions. The purpose of the Facility is to improve the general financial stability of credit unions by meeting their liquidity needs and thereby encourage savings, support consumer and mortgage lending and provide basic financial resources to all segments of the economy. The Central Liquidity Facility achieves this purpose through operation of a Central Liquidity Fund (CLF). The collection of information under this part is necessary for the CLF to determine credit worthiness, as required by 12 U.S.C 1795e(2).
Pursuant to the Office of Management and Budget (OMB) procedures established at 5 CFR 1320, the National Credit Union Administration (NCUA) requests that the following collection of information, Central Liquidity Facility, be processed in accordance with section 1320.13 Emergency Processing. The NCUA has determined that this information must be collected prior to the expiration of time periods established under Part 1320, and that this information is essential to the NCUAâs ability to effectively respond to events caused by the COVID-19 pandemic. This rulemaking is designed to provide greater access to backup liquidity so that credit union operations can remain uninterrupted during this rapidly evolving crisis. Timely processing of this request will help to ensure credit unions remain operational and liquid for the duration of the economic disruption stemming from the threat posed by the Novel (new) Coronavirus (â2019-nCoVâ).
NCUA is eliminating the six-month waiting period on Facility advances for a credit union that becomes a regular member. By removing these restrictions, NCUA can provide needed liquidity assistance in an expedited manner. The NCUA is also eliminating the waiting period for a credit union to terminate its membership in the Facility and understands that this flexibility is necessary to encourage the greatest number of eligible credit unions to join the Facility immediately and help the Agency, and the system at large, leverage these temporary measures and secure an adequate amount of external liquidity resources. By significantly increasing access to external funding, the Facility can better fulfill its central purpose to improve general financial stability by meeting the liquidity needs of credit unions.
US Code:
12 USC 1795f(a)(2)
Name of Law: National Credit Union Central Liquidity Facility Act
NCUA is eliminating the six-month waiting period on Facility advances for a credit union that becomes a regular member. By removing these restrictions, NCUA can provide needed liquidity assistance in an expedited manner. The NCUA is also eliminating the waiting period for a credit union to terminate its membership in the Facility and understands that this flexibility is necessary to encourage the greatest number of eligible credit unions to join the Facility immediately and help the Agency, and the system at large, leverage these temporary measures and secure an adequate amount of external liquidity resources. By significantly increasing access to external funding, the Facility can better fulfill its central purpose to improve general financial stability by meeting the liquidity needs of credit unions. These temporary amendments to part 725 will increase the number of respondents from its current estimate of 5 annually to 269 during this period; with a total information collection burden of 691 hours requested.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Central Liquidity Facility