Calculating and recording the distribution of nearly $736 million in equity from the federal insurance fund for credit unions is the aim of a new online resource offered by the insurance fund’s federal manager, the National Credit Union Administration (NCUA).
According to NCUA, it has posted on its website a preliminary pro rata calculation figure and instructions for recording the distribution. The two items are included in new “frequently asked questions” (FAQs) about the equity distribution, also posted on the website.
“The pro rata calculation figure is subject to change, and the NCUA assumes no responsibility for an eligible credit union’s accounting estimate of its Share Insurance Fund equity distribution,” the agency stated in a release.
Last fall, the agency’s board voted to close the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), a fund set up to resolve troubled “corporate” credit unions affected by the economic turndown in the late 2000s. Last month, the board authorized to eligible credit unions the equity distribution (that is, the funds remaining in the insurance fund after reserve requirements were met). The funds are expected to be paid out in the third quarter of 2018.