National Credit Union Central Liquidity Facility Lending Before the Year 2000 Date Change Page: 5 of 28
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one corporate credit union, and three of the loans were made by CLF to a credit union that
was a direct member of CLF, rather than through a corporate credit union.8 Of the 154 loans
made through corporate credit unions, 127, or 82 percent, were made by the 2 corporates that
were the heaviest users-76 loans by First Carolina Corporate Credit Union and 51 loans by
Northwest Corporate Credit Union.
Ninety-six percent of the 157 loans (151 in total) were borrowed on an overnight basis. Four
percent of the loans were for a longer duration, ranging from 14 days to 118 days.9 Those
longer term loans were the ones that CLF either lent directly to a corporate credit union
(without going through U.S. Central) or directly to the credit union member. CLF officials
said that the longer term loans were approved on a case-by-case basis and for specific
reasons. For instance, CLF officials said that the corporate credit union that received the
longest term loan requested such a loan because that corporate was (1) smaller than some of
its members and (2) wanted to ensure that it had adequate liquidity to meet its members'
needs without having to continuously roll the loan over each business day for a 3-month
Although the aggregate amount of CLF lending totaled about $666 million, the largest amount
outstanding on any given day during this period was about $159 million. There were a few
days in November when the amount outstanding reached $71 million, but most of the time the
amount outstanding was no higher than $41 million, $40 million of which consisted of one
large long-term loan. The days with the highest dollar amounts outstanding occurred between
December 27 and 29, 1999. For detailed information on CLF's daily loans outstanding, see
Nature of the Lo ans
Corporate credit union officials told us that corporate credit unions, not member credit
unions, made the decision to access CLF on the basis of their own internal needs.10 Of the 35
corporate credit unions that currently exist, 14 obtained CLF loans on behalf of their
members, although some of these corporate credit union officials said they could have
funded the liquidity demands of their members out of their own balances or by borrowing
from U.S. Central. Officials from corporate credit unions that did not obtain loans from CLF
told their trade association that (1) they chose not to because they thought they could fund
member loans from their own liquidity or (2) they did not see enough of a loan demand from
their members to warrant accessing CLF. Corporate credit unions that did obtain CLF loans
did so for various reasons. For instance, officials from one corporate credit union said it
obtained a CLF loan to run a test to ensure that everything ran smoothly through U.S. Central.
8 Most credit unions access CLF through their corporate credit union, which acts as an agent for its members. However, some
credit unions, referred to as regular member credit unions, have joined CLF directly and have direct access to CLF lending when
9 Four of the corporate credit unions' loans were for 87 days, and one loan was for 118 days. One of the loans to the regular
member credit union was for 14 days, and the other two were overnight loans.
o Corporate credit unions did not make the decision on behalf of the credit union that borrowed directly from CLF.
GAO/GGD-00-143R CLF Lending to Credit Unions Before Year 2000 Date Change
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United States. General Accounting Office. National Credit Union Central Liquidity Facility Lending Before the Year 2000 Date Change, text, May 23, 2000; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc296283/m1/5/: accessed May 26, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.