NCUA Announces Distribution of $ 865.5 Million Enterprise System Resolution Program | 2021-06-28
The NCUA, in its capacity as liquidation agent, on Monday announced a distribution of $ 865.5 million to the 1,800 capital account-holding members of the former Members United, Southwest Corporate and US Central credit unions.
The agency also announced the end of the NCUA guaranteed note program and will continue to implement its plan to orderly liquidate the remaining post-securitized assets and make other distributions where possible.
As the liquidation agent for the asset management assets of the former credit unions, the NCUA has already made two rounds of distributions to date.
The first distribution was made to former Southwest Corporate equity holders in July 2020. The second distribution was made to former Southwest Corporate equity holders, Members United and US Central in April of this year.
These former equity holders will also receive the final round of distributions, which are expected to take place before the end of September 2021. With this third distribution, the NCUA will have returned over $ 1.3 billion to former members’ equity account holders.
The Corporate System Resolution Program is a landmark initiative established by the NCUA Board of Directors to stabilize, resolve, and reform the corporate credit union system in the aftermath of the 2008 financial crisis. allowed the credit union system to absorb the failures of US Central, WesCorp, Southwest, Members United, and Constitution corporate credit unions over time.
Information about the corporate system resolution program, including projections for recoveries and claims from the company’s asset management estates and the process for determining when distributions are made to account holders Members’ capital, are available on the NCUA website.