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Central Liquidity Facility - CLF

Details have been finalized that will allow credit unions with assets 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.

Certain provisions in the recently passed CARES Act – together with authorization from NCUA – have enabled Catalyst Corporate to capitalize the CLF through the Agent Subscription Program on behalf of member credit unions with assets under $250 million. This will make it easier for credit unions to access funds if they are experiencing unusual or unexpected liquidity shortfalls.

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, Catalyst Corporate can now assist credit union members requesting an advance from the CLF and processing 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 a credit union’s account with Catalyst Corporate. For now, the measure is temporary and set to expire on December 31, 2020.

The following steps are necessary to access agent CLF funding: 

  • 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: 2-6 months, 6-12 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 forms are also required:

If you have questions about completing the documents and forms, please contact the Member Credit Department at 800.442.5763, option 6. Send completed documents and forms to the Member Credit Department.