Central Liquidity Facility Loans
The Central Liquidity Facility (CLF) is a mixed-ownership government corporation created to improve the general financial stability of credit unions by serving as a liquidity lender when a credit union experiences unusual or unexpected liquidity shortfalls. Member credit unions own the CLF, which exists within the NCUA. The President of the CLF manages the facility under the oversight of the NCUA Board.
Membership is voluntary and open to all credit unions that purchase a prescribed amount of CLF stock – becoming “regular” members of the CLF. The CLF provides term loans that fall into one of three categories: short-term, seasonal and protracted adjustment credit. It does not grant lines of credit.
Catalyst Corporate will act as correspondent to the CLF for credit unions that are regular (direct) members of the CLF.
Features & Benefits:
- Credit unions with assets exceeding $250 million are required by the NCUA to establish access to a government-backed source of emergency liquidity, and the CLF is the only credit union-system option that qualifies.
- CLF will provide short-term, seasonal, and protracted adjustment credit.
- Catalyst Corporate can provide assistance to credit unions that own stock in the CLF as they complete credit applications and also help to facilitate loan advances.
- Catalyst Corporate will serve as a collateral custodian for direct CLF members.
- Catalyst Corporate will assist member credit unions with submitting credit applications and accompanying documentation requirements to secure loan advances.
- Members receive support to help meet their credit and collateral reporting requirements once a CLF advance has been made.
Resources: NCUA’s CLF Information Site Emergency Liquidity Resource Guide