News & Events

Millennium Corporate is now a CLF Agent Member!

For starters, let's all get on the same page, the Central Liquidity Facility or CLF page. The CLF is a mixed-ownership government corporation that exists within the NCUA that serves as a liquidity lender to credit unions experiencing unusual or unexpected liquidity shortfalls. The CARES or Coronavirus Aid Relief and Economic Security Act, signed into law last month by President Trump, grants the NCUA Board authority to expand access to and increase the borrowing authority for the CLF through December 31, 2020.

Although liquidity levels are not critical now, preparing for the possibility of market liquidity constraints that could occur if the situation continues to deteriorate, is a wise strategy. Should that happen, the CLF would prove vital in addressing the liquidity needs for credit unions and the National Credit Union Share Insurance Fund. The NCUA is making changes now to ensure the CLF is ready should we be faced with this challenge. There were four changes made to the CLF, with one of them critical to recent events. One of the temporary changes to the law allow Agent Members to purchase stock for a portion of their membership versus all. i.e. Millennium Corporate can become an Agent Member and purchase CLF stock on behalf of a portion of our membership. And that's just what we did!

As instructed by the Millennium Board of Directors, CLF stock was purchased in early May for all Millennium Corporate members with assets below $250 million. A stock purchase to the tune of $21,388,385.

What does that mean for members? Peace of mind knowing you have access to liquidity without any cost to the credit union. And peace of mind, right now, is worth its weight in gold.

Each credit union for which stock was purchased will receive a follow-up email from Millennium Corporate - credit unions with assets below $250 million. If you're a member with assets $250 million or above, and you have questions about directly purchasing CLF stock, reach out to our very own Heather Seiler, Executive Assistant, at heather@millenniumcorporate.org or 800.721.2677 x109. She's eager to help you manage the process!

Today, Tomorrow, Together