NCUA 8702 and NCUA Regular Membership/Reporting Agreement

NCUA Central Liquidity Facility
Operating Circular 20-03
HOW TO APPLY FOR REGULAR MEMBERSHIP: A BRIEF OVERVIEW

April 2020

[This page intentionally left blank]

0

Table of Contents
What is the Central Liquidity Facility? .......................................................................... 1
How Does a Credit Union Join?....................................................................................... 1
What Are the Application Steps? .................................................................................... 2
Appendix A: Contacts ................................................................................................... A-1
Appendix B: Application Process Map ....................................................................... B-1
Appendix C: Application Documents ........................................................................ C1-1

i

A description of Regular Membership is contained in Operating Circular 20-02: Regular
Membership Facility Advances. This paper provides a brief, high-level summary of the steps
and necessary forms to become a Regular Member and is intended as a quick reference
resource for new members.

What is the Central Liquidity Facility?
The National Credit Union Administration (NCUA) Central Liquidity Facility (CLF or
Facility) was created by the National Credit Union Central Liquidity Facility Act. The
Facility is a “mixed ownership Government corporation” within the National Credit Union
Administration. It is an instrumentality of the Federal Government owned by its member
credit unions and managed by the NCUA Board. The purpose of the Facility is to improve
the general financial stability by providing credit unions with a source of loans to meet their
liquidity needs and thereby encourage savings, support consumer and mortgage lending, and
provide basic financial resources to all segments of the economy. CLF was created by
Congress in 1979 because credit unions needed their own source of funds to meet their
liquidity needs in the same way that the Federal Reserve System “discount window” provided
access to loans for banks. Barriers to last-resort liquidity have changed favorably over time
(e.g., credit unions who qualify may now borrow from the Federal Reserve discount window)
but the CLF continues to be an important major back-up source of liquidity for both Federaland state-chartered credit unions.
The purpose of this guidance is to provide basic information regarding the application
procedures and forms used to become a Regular Member of the CLF. These procedures
implement the basic framework provided in Title III of the Federal Credit Union Act (12
U.S.C. § 1795) and part 725 of the NCUA regulations (12 C.F.R. § 725).

How Does a Credit Union Join?
A credit union can become a Regular member of the facility by:
a) submitting an application for regular membership to the Facility; and
b) subscribing to capital stock of the Facility as set forth in NCUA regulations
§ 725.3(a).
This applies to federal, state-chartered and privately insured credit unions. Please note a
credit union may already be covered as a member of a Corporate Credit Union's (CCU) Agent

1

Group and therefore should first check with their CCU and the CLF before applying to
become a regular member. Points of Contact are listed in Appendix A.

What Are the Application Steps?
1) The general process is illustrated in Appendix B. Begin by following the instructions
for completing the Application and Agreement for Regular Membership in the NCUA
Central Liquidity Facility included in Appendix C-1 (Form CLF-8702) and the NCUA
Central Liquidity Repayment, Security, and Credit report Agreement for Regular
Members in Appendix C-2 (Form CLF-8703).
The NCUA recommends that a credit union first contacts the CLF prior to submitting
an application to review the process and to obtain an estimate of the capital stock
subscription amount calculated on Form CLF-8702. A credit union may do so by
emailing clfmail@ncua.gov with “Request for CLF Membership” in the subject line
and providing the following information:
•

Credit Union Name

•

Charter Number

•

Contact Name and Telephone Number

2) Confirm with the CLF the amount of the capital stock subscription, sign the CLF
Application (CLF-8702) and the Repayment, Security and Credit Reporting
Agreement (CLF-8703), and forward with completed and signed ACH and W-9 forms
to the CLF. Please note that forms CLF-8702 and CLF-8703 require certain credit
union official's signature and board approval. The CLF will provide payment
instructions. NCUA uses pay.gov to process payments. Email the CLF the electronic
copy of the completed application.
3) Upon receipt, processing and approval of a completed application and receipt of
payment, a welcome package will be provided with further information.
To contact the CLF, please write to either of the addresses listed below:
Address:

National Credit Union Administration
Central Liquidity Facility
1775 Duke Street
Alexandria, VA 22314

Email:

CLFMail@NCUA.gov
2

Appendix A: Contacts
National Credit Union Administration (NCUA) Contacts
Central Liquidity Facility

Southern Region

Office of Examination and
Insurance

TX, OK, AL, AR, FL, GA, IN, KY, LA,
MS, NC, PR, SC, TN, U.S. VIRGIN
ISLANDS

1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6428
clfmail@ncua.gov

1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6360, (703) 518-6499 FAX
eimail@ncua.gov

Office of National Examination and
Supervision (ONES)
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6640, (703) 518-6439 FAX
onesmail@ncua.gov

Eastern Region

1775 Duke Street, Suite 4206
Alexandria, VA 22314-3437
(703) 519-4600, (703) 519-4620 FAX
EasternMail@ncua.gov
CT, DE, DC, ME, MD, MA, MI, NH, NJ,
NY, OH, PA, RI, VT, VA, WV

4807 Spicewood Springs Rd. Suite 5200
Austin, TX 78759-8490
(512) 342-5600, (512) 342-5620 FAX
SouthernMail@ncua.gov

Western Region

1230 W. Washington Street,
Suite 301
Tempe, AZ 85281
(602) 302-6000, (602) 302-6024 FAX
WesternMail@ncua.gov
AK, AZ, CA, CO, GU, HI, ID, IL, IA, KS,
MN, MO, MT, NE, NV, NM, ND, OR, SD,
UT, WA, WI, WY

AMAC -Asset Management &
Assistance Center

4807 Spicewood Springs Rd, Suite 5100
Austin, TX 78759-8490
(512) 231-7900, (512) 231-7920 FAX
amacmail@ncua.gov

A-1

CLF Agent Contacts
Alloya Corporate Federal Credit Union
Todd Adams, CEO/President
184 Shuman Boulevard, Suite 400
Naperville, IL 60563
(800) 782-2431
www.alloyacorp.org

Louisiana Corporate Credit Union
David Savoie, CEO/President
3500 N Causeway Blvd, Ste 1510
Metairie, LA 70002
(800) 421-7030
www.lacorp.com

Catalyst Corporate Federal Credit Union
Bruce Fox, CEO/President
6801 Parkwood Blvd
Plano, TX 75024
(800) 442-5763
www.catalystcorp.org

Millennium Corporate Credit Union
Larry Eisenhauer, CEO/President
8615 W Frazier Ln
Wichita, KS 67212
(800) 721-2677
www.millenniumcorporate.org

Corporate America Credit Union
Pete Pritts, CEO/President
4365 Crescent Rd
Irondale, AL 35210-1774
(800) 292-6242
www.corpam.org

TriCorp Federal Credit Union
Stephen Roy, CEO/President
2 Ledgeview Dr
Westbrook, ME 04092
P.O. Box 1429 Portland, ME 04104
(800) 346-1936
www.tricorp.org

Corporate Central Credit Union
Chris Felton, CEO/President
6262 South Lowell Pl
Muskego, WI 53150
(800) 242-4747
www.corpcu.com
Corporate One Federal Credit Union
Melissa Ashley, CEO/President
8700 Orion Pl
Columbus, OH 43240
(866) 692-6771
www.corporateone.coop
Eastern Corporate Federal Credit Union
Jane Melchionda, CEO/President
35 Corporate Dr, Ste 300
Burlington, MA 01803
(800) 428-1144
www.eascorp.org

Vizo Financial Corporate Credit Union
Jay Murray, CEO/President
7900 Triad Center Dr Ste 410
Greensboro, NC 27409
(800) 585-4317
www.vfccu.org
Volunteer Corporate Credit Union
Jeff Merry, CEO/President
2460 Atrium Way
Nashville, TN 37214
(800) 470-3444
www.volcorp.org

A-2

Appendix B: Application Process Map

B-1

APPENDIX C: AGREEMENTS
OMB Control No.: 3133-0061

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity
Facility
INSTRUCTIONS: PART A
Item No.

Instructions/Remarks

4

Enter your credit union's charter number if
federally chartered or National Credit
Union Share Insurance Fund (NCUSIF)
certificate number if federally insured.
Leave blank if your credit union is neither
federally chartered nor insured by the
NCUSIF.

5,6

Enter the name and telephone number
(including area code) of the individual to be
contacted regarding Central Liquidity
Facility (the Facility) matters. The
individual named should be a person
authorized to transact business with the
Facility.

7

Item No.

quarter-end which is six months prior to the
month in item 11(a).
11(c)

Total columns (1), (2), (3), (4), (5) and (6).

11(d)

Divide the total at 11(c)(6) by 2, to arrive at
the arithmetic average of paid-in and
unimpaired capital and surplus for this sixmonth period. The amount of your credit
union's initial Facility stock subscription is
based upon this average value in accordance
with Section 304(c)(l), the CLF portion of
Title III of the Credit Union Act (The Act).

12

The capital stock subscription for your
credit union is equal to ½ of one percent of
the average paid-in and unimpaired capital
and surplus from item 11(d) above.

Enter the date this application is prepared.
Use a six digit numeric designation: for
example, August 10, 2020 would be entered
as 08/10/20.

8

Check the appropriate block to indicate
insurance status of your credit union. If
member shares are insured by the NCUSIF,
check block (a). If member shares are
insured by a share insurance program other
than NCUSIF, check block (b). If member
shares in your credit union are uninsured,
check block (c).

9

If block 8(b) is checked, enter the name of
the share insurance program which insures
your members' shares.

10

Enter the name and address and ABA
routing number of the financial institution
used by the credit union as its depository
and record the credit union's account
number at that depository.

11(a), (b)

CLF-8702

On line (a) enter the date and requested data
for the most recent quarter-end preceding
the date of this application. On line (b)
enter the date and requested data of the

Instructions/Remarks

To determine the amount of your credit
union's Facility stock subscription, multiply
the average paid-in and unimpaired capital
and surplus from item 11(d), by 0.005 and
round the resultant answer to the nearest
whole dollar. For example, if the value
reported in item 11(d) were $25,245.00, the
figure to report in item 12 would be
computed as follows:
$25,245.00
x 0.005
126.225
($126.225 rounded to the nearest whole
dollar equals $126)
If the stock subscription calculated in the
above manner results in an answer of less
than $50.00, then your credit union's stock
subscription shall be $50.00. This is
required by section 305(a) of the Act.
13

Section 305(d) of The Act requires that at
least 1/2 of the stock subscription amount
must be paid to the Facility. The remainder
C1 - 1

The CLF may not collect this information, and you are not required to complete this form, unless it displays a
currently valid control number. Estimated time to complete this form is 30 minutes.

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity
Facility
Item No.

Instructions/Remarks
must be held on call and shall be invested in
assets designated by the Facility's Board.
The amount of funds that must accompany
this application when it is submitted to the
Facility is computed by dividing the dollar
amount of the stock subscription reported in
item 12 by 2. In our foregoing example
where the stock subscription was $126, the
credit union would be required to pay $63
($126 ÷ 2) with its application.

14

INSTRUCTIONS: PART C
Any supporting documents submitted with
this application are to be identified by
schedule number beginning with l (one) and
numbered consecutively. All schedules
should be listed in Part C.
Prior to submitting this application, the
resolutions contained in part C must be
adopted by the credit union's board of
directors.

If your credit union is a member of one or
more corporate credit unions, list the names
of all those corporate credit unions of which
your credit union is a member.

INSTRUCTIONS: PART B
The Facility is permitted to lend to credit
unions primarily serving natural persons,
only to meet liquidity needs as specified in
The Act. To ensure that Facility loans are
used by Regular members for those purposes
permitted by The Act, the Facility will need
to have access to certain records of the
Regular member and will require certain
record keeping. This section contains a
series of agreements that will provide the
Facility with the necessary access to
information.

CLF-8702

OMB Control #:3133-0061

C1 - 2

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity
Facility
PART A: GENERAL INFORMATION
Items 1 thru 10 are designed for computer data entry. Please do not use more than the allotted number of characters. (The
number in parentheses after each title block of each item is the total number of allowed characters including spaces for that
item.)
1.

5.

Credit Union Name (35)

2.

6.

Street Address

3.

City (20)

4.

Contact Person (30)

State (2)

Zip Code (5)

Telephone Number (10)

7.

Application Date

Charter/insurance Certificate Number (5)

8.

Insurance Status:

9.

a. ☐ Federally Insured

b. ☐ State Program

Name of Share Insurance Program

c. ☐ Uninsured

NCUA Use Only

10. Local Depository Information
a.

b.

c.

d.

Depository Name (35)

e.

Street Address (35)

City (20)

State (2)

ABA Routing Number (9)

Account Number (15)

Zip Code (5)

PLEASE NOTE:
Natural Person Credit Union applicants should proceed to page C1-4 and skip page C1-5.
Corporate Credit Union applicants should proceed to page C1-5 and skip page C1-4.

CLF-8702

OMB Control #:3133-0061

C1 - 3

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity Facility
PART A1: FOR NATURAL PERSON CREDIT UNIONS
11. Computation of six-month arithmetic average of paid-in and unimpaired capital and surplus: (Account Numbers obtained from
NCUA 5300 Call reports)
Line (a) DATE:

(Date of most recent quarter-end)

Line (b) DATE:

(Date for quarter-end six months prior)

(1)
Shares
(018)

(2)

(3)

Other Reserves Net Income (Loss)
+
+
+
(602)
(658)

(4)
Undivided
Earnings
(940)

(5)
Accum.
Unrealized
+ Gains/Losses on =
AFS Securities
(EQ0009)

(6)
Paid-in and
Unimpaired
Capital and
Surplus

(a)
(b)
Total:

(c)
(d) Arithmetic average of paid-in and unimpaired capital and surplus (Item (c)(6) / 2)

$

12. Amount of Facility Shares (Item 11(d) x 0.005)

$

13. Amount due to CLF (Item 12 / 2) (Round to nearest whole number)

$

14. Membership(s) in Corporate Credit Unions:
Credit Union
Credit Union
Credit Union

NCUA Use Only
NCUA Use Only
NCUA Use Only

If you need help completing this application, please email CLFMail@NCUA.gov.

CLF-8702

OMB Control #:3133-0061

C1 - 4

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity Facility
PART A2: FOR CORPORATE CREDIT UNIONS
11. Computation of six-month arithmetic average of paid-in and unimpaired capital and surplus: (Account Numbers obtained from
NCUA 5310 Call reports)
Line (a) DATE:

(Date of most recent quarter-end)

Line (b) DATE:

(Date for quarter-end six months prior)

(1)
Shares
(5903)

(2)

(3)

Other Reserves Net Income (Loss)
+
+
+
(5500C)
(5500I)

(4)
Undivided
Earnings
(5500H)

(5)
Accum.
Unrealized
+ Gains/Losses on =
AFS Securities
(5500E)

(6)
Paid-in and
Unimpaired
Capital and
Surplus

(a)
(b)
(c)

Total:

(d) Arithmetic average of paid-in and unimpaired capital and surplus (Item (c)(6) / 2)

$

12. Amount of Facility Shares (Item 11(d) x 0.005)

$

13. Amount due to CLF (Item 12 / 2) (Round to nearest whole number)

$

If you need help completing this application, please email CLFMail@NCUA.gov.

CLF-8702

OMB Control #:3133-0061

C1 - 5

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity Facility
PART B: MEMBERSHIP AGREEMENTS AND SUPPORTING DOCUMENTS
1.

2.

The above named credit union hereby applies for Regular membership in the Central Liquidity Facility (Facility) as provided
in Title III of the Federal Credit Union Act, and in consideration of the granting of Regular membership hereby agrees:
a. To comply with the requirements of Title Ill of the Federal Credit Union Act and any regulations and reporting
requirements which are prescribed for Regular members by the NCUA Board pursuant thereto.
b. To permit the NCUA Board or its designee to have access to any information or report with respect to any examination
made by or for any public regulatory authority, including any commission, board, or authority having supervisory
responsibility over this credit union, and furnish such additional information with respect thereto as the NCUA Board
may require.
c. To permit the NCUA Board or its designee to have access to all records and information concerning the affairs of this
credit union related to Facility activity and to furnish such information pertinent thereto that the Board may require.
d. To maintain records related to Facility activity in conformance with requirements prescribed by the NCUA Board from
time to time.
I (We) understand that:
a. The stock subscription represents an investment by this credit union in the Facility.
b. The paid portion of the stock subscription will be recorded on the credit union's books as an asset.
c. The unpaid portion of the stock subscription shall be held in cash, deposits in corporate credit unions with remaining
maturities of 6 months or less, deposits in federally insured banks and savings and loan associations with remaining
maturities of 6 months or less, U.S. Government obligations (of a type authorized for investment by Federal credit
unions under 12 U.S.C. 175(7) with remaining maturities of 1 year or less, additional shares in the Facility and such
other investments as may be authorized from time to time by the NCUA Board.
d. The amount of the Facility capital stock subscription shall be adjusted at the close of each calendar year in accordance
with an arithmetic average of the unimpaired capital and surplus over a period specified by regulations.
e. This credit union may withdraw from membership in the Facility subject to the following notification and waiting
period:
i.
A member of the Facility whose required capital stock subscription constitutes less than 5 per centum of such
required stock subscriptions outstanding, may withdraw from membership in the Facility six months after
notifying the NCUA Board of its intention to do so.
ii.
A member of the Facility whose required capital stock subscription constitutes 5 per centum or more of such
required stock subscriptions outstanding, may withdraw from membership in the Facility twenty-four months after
notifying the NCUA Board of its intention to do so.
In accordance with amendments to part 725 approved on April 9, 2020, paragraphs (1) and (2) of this section do
not apply from April 8, 2020 until January 1, 2021. During such period the following shall apply:
iii.
A member, regardless of its amount of stock subscription, may withdraw from membership in the Facility after
notifying the NCUA Board in writing on the sooner of:

iv.

v.
f.
g.

CLF-8702

1. Six months from the date of its written notice to the NCUA Board; or
2. December 31, 2020.
Any credit union that does not elect to withdraw from membership in the Facility during the time periods
prescribed in paragraph (e)(3) of this section, may immediately withdraw from membership in the Facility after
notifying the NCUA Board in writing of its intention to do so from January 1, 2021 to January 1, 2022. As of
January 1, 2022, the requirements of paragraphs (1) and (2) of this section, as in effect on March 1, 2020, shall
apply.
The Facility will process requests under paragraph (e) of this section upon demand and deliver funds as soon as
practicable, allowing for the time necessary for settlement and transfer of funds in these transactions.

The NCUA Board may terminate our membership in the Facility if, after opportunity for hearing, it determines that we
have failed to comply with any provisions of the Central Liquidity Facility Act or regulation issued pursuant thereto.
Dividends will be paid on the paid-in portion of the Facility stock from available earnings at rates to be determined by
the NCUA Board.

OMB Control #:3133-0061

C1 - 6

The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid
control number. Estimated time to complete this form is 30 minutes.

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity Facility
PART C: CERTIFICATIONS AND RESOLUTIONS
We, the undersigned, certify to the correctness of the information submitted. In support of this application we submit the Schedules
described below:

Schedule No.

(Signature)

Schedule Title

(Print or Type Officer’s Name)

Schedule No.

(Signature)

Schedule Title

(Print or Type Treasurer’s Name)

CLF-8702

OMB Control #:3133-0061

Chief Elected Official (Board)

Treasurer (Board)

C1 - 7

The CLF may not collect this information, and you are not required to complete this form unless it displays a currently valid
control number. Estimated time to complete this form is 30 minutes.

C-1: Application and Agreements for Regular Membership in the NCUA Central Liquidity Facility

Certifications and Resolutions

(Credit Union Name)
(City)

(State)

We certify that we are the duly elected and qualified president (chief elected official) and secretary of said credit union and that at a
properly called regular or special meeting of its board of directors, at which a quorum was present, the following resolutions were
passed and recorded in its minutes:
"Be it resolved that this credit union apply for Regular membership in the National Credit Union Central Liquidity
Facility as provided in Title III of the Federal Credit Union Act."
"Be it further resolved that the president (chief elected official) and treasurer be authorized and directed to execute the
APPLICATION AND AGREEMENTS FOR REGULAR MEMBERSHIP IN THE NCUA CENTRAL LIQUIDITY
FACILITY and any other papers and documents required in connection therewith and to pay all expenses and do all
such things necessary or proper to secure and continue such membership."
"Be it further resolved that the president/chairman or vice president/vice chairman and treasurer or assistant treasurer
(or their successors as authorized by resolution) are authorized to execute notes and applications for advances from
the National Credit Union Central Liquidity Facility in such amounts as may be authorized from time to time by the
board of directors of this credit union."

(Signature)

(Print or Type Officer’s Name)

Chief Elected Official (Board)

(Signature)

Secretary, Board of Directors

(Print or Type Secretary’s Name)

OMB 3133-0061

CLF-8702

OMB Control #:3133-0061

C1 - 8

Appendix C: Agreements
C-2: NCUA Central Liquidity Facility Repayment, Security, and Credit Reporting Agreement for
Regular Members
In order to eliminate the need to sign documents each time an advance is made, the Central Liquidity Facility (Facility)
requires each member to sign a repayment, security and credit reporting agreement governing all advances by the Facility
The enclosed agreement includes a promise to repay all advances, the security agreement, and the other loan terms which are
known in advance. Other more specific terms, such as the amount, interest rate, maturity and the schedule of payments will
be disclosed in a confirmation that will be sent to the borrowing credit union each time an advance is made. The agreement
also includes a credit reporting agreement which establishes reporting requirements to enable the Facility to obtain
information concerning the status of its advances.
To properly complete the agreement, type or print the data requested at the top of page one and at the bottom of the last page.
For the line designated "Charter/Insurance Certificate Number" on page one; enter your credit union's charter number if
federally chartered or National Credit Union Share Insurance Fund (NCUSIF) certificate number if federally insured. Leave
blank if your credit union is neither federally chartered nor insured by NCUSIF.
The Chief Elected Official and the Treasurer should sign on the lines provided on the last page. Return an original executed
copy in the pre-addressed envelope. Retain a copy for the credit union's files.

CLF-8703
C2 - 1
The CLF may not collect this information, and you are not required to complete this form unless it displays a
currently valid control number. Estimated time to complete this form is three hours.

C-2: NCUA Central Liquidity Facility Repayment, Security, and Credit Reporting Agreement for
Regular Members
REPAYMENT, SECURITY, AND CREDIT REPORTING AGREEMENT

(Regular Member)

Credit Union Name

Charter / Insurance Certificate Number

City

State

NCUA-8703

OMB Control #:3133-0061

C2 - 2

C-2: NCUA Central Liquidity Facility Repayment, Security, and Credit Reporting Agreement for
Regular Members
PARTIES
(1) Effective date. This agreement is between the
National Credit Union Central Liquidity Facility
(hereinafter "the Facility") and a Regular member of
the Facility (hereinafter "the Member"). It becomes
effective when signed by the Regular member and
the Facility and shall remain in effect as long as the
Regular member is a member of the Facility or there
is any unpaid repayment obligation created hereunder
between the Regular member and the Facility.
(2) CLF regulations. All advances of Facility funds to
the Regular member are subject to the terms and
conditions of this agreement and to applicable terms
and conditions in the National Credit Union Central
Liquidity Facility Act, regulations prescribed by the
NCUA Board on behalf of the Facility, and operating
circulars issued by the Facility, including all
amendments and supplements thereto. The Regular
member shall perform each of the obligations
imposed on it by any such term or condition.
REPAYMENT
(3) Confirmation. In connection with each advance of
Facility Funds to the Regular member, the Facility
shall issue a confirmation of credit (hereinafter the
"confirmation") which shall be sent to the Regular
member. The confirmation may be issued before or
after the date of the advance and shall be in such
form and sent in such manner as may be determined
by the Facility. The confirmation shall specify:
(i)

the date of the advance;

(ii)

the amount of the advance;

(iii)

the interest rate;

(iv)

the principal repayment date or dates, if any;

(v)

the amount due on each such principal
repayment date (excluding interest);

(vi)

the interest payment date or dates, if any;

(vii)

the maturity date; and

(viii) the types of liquidity needs for which the
Facility funds are advanced (i.e.. short-term
adjustment credit, seasonal credit, or
protracted adjustment credit);
(ix)

the security given for the advance.

The confirmation may also specify the manner in
which the Regular member must pay the Facility on
the maturity date. A confirmation may be combined

with other information, including other
confirmations, in a listing or other form of
communication. More than one advance of Facility
funds may be included, with or without other funds,
in a single transfer of funds from the Facility to the
Regular member.
(4) Loan application; use of funds. The Regular
member's application for a Facility advance must be
filed on a Facility-approved application form, or
pursuant to any other method approved by the
Facility. Each advance of Facility funds shall be
used by the Regular member solely for the liquidity
needs for which funds were advanced, as specified in
the confirmation issued by the Facility in connection
with the advance. If funds were previously borrowed
by the Regular member from a party other than the
Facility to meet the liquidity needs for which Facility
funds were advanced, the advance of Facility funds
may be used to repay the borrowed funds.
(5) Repayment obligation. When the Regular member
receives an advance of Facility funds, a repayment
obligation is created (herein a "repayment obligation
created hereunder") whereby the Regular member,
for value received, agrees:
(i) to pay to the Facility on each principal
repayment date an amount equal to the principal
amount due on such principal repayment date
plus unpaid interest from the date of the advance
through such principal repayment date; and
(ii) to pay the Facility on each interest payment date
an amount equal to unpaid interest from the date
of the advance through such interest payment
date; and
(iii) to pay the Facility on the maturity date an
amount equal to the unpaid balance of the
amount of the advance, if any, plus unpaid
interest from the date of the advance through
such maturity date; and
(iv) if the amount due on the maturity date or any
principal repayment date or interest repayment
date is not paid on or before such date, to pay the
Facility
(a) reasonable expenses of collection, including
the reasonable attorney's fees and expenses
incurred, plus

(b) a late payment charge equal to one and
one-half times the rate of the most
recently auctioned 13-week United States
Treasury bill on the unpaid balance of the
principal amount due on such date, plus
CLF-8703
C2 - 3
The CLF may not collect this information, and you are not required to complete this form unless it displays a
currently valid control number. Estimated time to complete this form is three hours.

C-2: NCUA Central Liquidity Facility Repayment, Security, and Credit Reporting Agreement for
Regular Members
(c) interest after such date on the unpaid
balance of the principal amount due on such
date.
As used herein, unless the context otherwise requires,
the date and amount of the advance, the interest rate,
the principal repayment and interest payment dates,
the principal amount due on each such principal
repayment date, and the maturity date are the dates,
amount and rate specified as such in the confirmation
issued by the Facility in connection with the advance.
Interest shall be determined hereunder as follows,
using the interest rate specified as such in the
confirmation: commencing on the date of the
advance, interest shall accrue each day on the unpaid
balance of the amount of the advance, and the unpaid
interest from the date of the advance through any date
shall be equal to accrued interest through such date
less the portion of such accrued interest that has been
paid prior to such date. The Regular member may
make a prepayment in any amount at any time. Each
payment and each prepayment shall be applied first
to any unpaid late payment charge, then to unpaid
interest through the date of the payment or
prepayment, and then to the unpaid balance of the
amount of the advance. When the unpaid balance of
the amount of the advance is reduced as a result of a
prepayment, the principal amount due on the next
succeeding principal repayment date shall be reduce
by an amount equal to the reduction in the unpaid
balance of the amount of the advance. The Facility
may waive any part or all of the interest or late
payment charge. If the amount owed to the Facility
on all repayment obligations created hereunder
become immediately due and payable under the terms
of this agreement, the maturity date, as used herein, is
the date such amounts become immediately due and
payable or the date specified in the confirmation as
the maturity date, whichever occurred first.
The Regular member may make a prepayment in any
amount at any time provided, however, that the
Facility shall impose on any such prepayment, a
prepayment penalty equivalent to any resultant
prepayment penalty or cost incurred by the Facility.

General intangibles are any personal property other than
goods, accounts, chattel paper, documents instruments or
money. Examples of general intangibles are the right to
receive payment of a loan not evidenced by an instrument

1

CLF-8703

OMB Control #:3133-0061

SECURITY
(6) Collateral. To secure the repayment obligation
created by an advance of funds pursuant to this
agreement, the regular member grants the Facility a
security interest (the "collateral") as set forth below:
(i) a first priority security interest in the following
described assets of the regular member having a
net book value of at least equal to an amount of
the funds advanced as required by the Facility’s
Collateral Table, unless the advance is
guaranteed by the National Credit Union Share
;
Insurance Fund (NCUSIF):
OR
(ii) a security interest in all assets of the Regular
member, including but not limited to:
(a) all notes, instruments, and other monetary
obligations (written or unwritten) which
evidence or represent right of the Regular
member to the payment or repayment of
money;
(b) all chattel paper, as defined in the Uniform
Commercial Code;
(c) all securities (whether or not represented by
instruments), including shares in the capital
stock of the Facility;
(d) all demand, time savings, passbook and loan
accounts, including share accounts,
maintained with a bank, savings and loan
association, credit union or like
organization;
(e) money, as defined in the Uniform
Commercial Code;
(f) all general intangibles, as defined in the
Uniform Commercial Code; 1 and
(g) all proceeds of all such notes,
(h) instruments, monetary obligations, chattel
paper, securities, accounts, money and
general intangibles.
(7) Perfection. The Facility shall have the right at any
time to perfect the security interest granted hereunder
with respect to any part or all of the collateral, either

or chattel paper, rights to performance, and business
goodwill.

C2 - 4

C-2: NCUA Central Liquidity Facility Repayment, Security, and Credit Reporting Agreement for
Regular Members
by filing or by taking or retaining possession thereof.
If perfection is by filing, the Regular member shall
sign a financing statement and such other papers as
may be appropriate for filing and shall pay all
necessary filing fees. If perfection is by taking
possession, the Regular member shall take such
action as may be necessary to transfer possession to
the Facility, including delivery to the Facility or its
designee at the expense of the Regular member. The
Facility may subordinate or terminate it security
interest in any part of all of the collateral subject to
such terms and conditions as the Facility may
impose.
(8) Third-party security interest. The Regular member
may not pledge or grant a security interest in any
asset in which a security interest is granted to the
Facility under this agreement if, as a result, the net
book value of the collateral would fall below the
collateral amount required by the Facility’s Collateral
Table. The Facility may at any time further restrict
or prohibit the pledging or granting of security
interests in the collateral or the borrowing of amounts
that are secured by any pledge or security interest.
Except as stated in this paragraph, or as further
restricted or prohibited by the Facility, the Regular
member may at any time pledge or grant security
interests in the collateral to parties other than the
Facility, including corporate credit unions. The
Regular member must report such security interests
to the Facility as follows: Each application of the
Regular member for Facility advance shall show the
total amount borrowed by the Regular member from
sources other than the Facility and shall identify the
types of assets, if any, which the Regular member has
pledged or subjected to a security interest in order to
secure repayment of the amounts borrowed. If there
is an increase in the total amount borrowed from
other sources, as shown in the application or any
subsequent report, the Regular member shall report
the increase to the Facility within five business days
after the increase occurs. The report shall show the
total amount currently borrowed from other sources
(including the increase) and shall identify the types of
assets, if any which the Regular member has pledged
or subjected to a security interest in order to secure
repayment of the amounts borrowed. A report of the
increase is not required if the Regular member does
not owe any amount to the Facility on any repayment
obligation created hereunder.
CLF-8703

OMB Control #:3133-0061

(9) Acceleration and default. The amounts owed to the
Facility on all repayment obligations created
hereunder shall become immediately due and payable
to the Facility, without any demand or notice, upon:
(i)

the failure of the Regular member to perform
any of its obligations under this agreement,
including failure to pay the amount due on any
maturity date, principal repayment date or
interest repayment under any repayment
obligation created hereunder; or

(ii)

the failure of the Regular member to pay any
other obligation to the Facility when due; or

(iii)

the failure to comply with the terms of any
undertaking, statement or representation made

(iv)

by the Regular member to the Facility in any
application, certification or other
communication; or

(v)

the insolvency of, or appointment of a trustee
or receiver for, the Regular member; or

(vi)

an assignment for the benefit of creditors of
the Regular member; or

(vii) the closing or suspension or revocation of the
charter of the Regular member, or the taking
possession of its business, by any
governmental authority; or
(viii) the Regular member's use of the proceeds of
any advance for a purpose other than the
liquidity needs for which the advance was
made; or
(ix)

the withdrawal of the Regular member from
membership in the Facility.

The occurrence of any of the events described in
subparagraphs (9)(i) through (9)(viii) hereof shall
constitute a default under this agreement. The term
"insolvency" in subparagraph (9)(iv) hereof has the
same meaning as in 12 CFR 700.1 (G)(l). The
Facility may waive a default under this agreement
and may reinstate the maturity date on any repayment
obligation created hereunder which becomes
immediately due and payable as a result of any such
default.
(10) Enforcement. Upon the occurrence of a default
under this agreement, or at any time thereafter, the
Facility shall have all the rights and remedies
provided under the Uniform Commercial Code and
under this agreement, including but not limited to any
one or more of the following: the Facility may:
C2 - 5

C-2: NCUA Central Liquidity Facility Repayment, Security, and Credit Reporting Agreement for
Regular Members
(i) take or retain possession of the collateral, or any
part thereof,
(ii) collect the proceeds of the collateral,
(iii) notify obligors on the collateral to make
payments to the Facility,
(iv) sell or otherwise dispose of any part or all of the
collateral at public or private proceedings,
(v) buy the collateral or any part thereof, and
(vi) retain the collateral, or any part thereof, in
satisfaction of any part of all of the obligations
secured by the collateral.
The proceeds of the collateral, including the proceeds
of sale or other disposition thereof, shall be applied
by the Facility first to the reasonable expenses of
collecting such proceeds and of taking, holding, and
selling the collateral, including the reasonable
attorney's fees and legal expenses incurred, and then
to the payment of amounts due on all repayment
obligations created hereunder. Any surplus then
remaining shall be paid or returned to the Regular
member. If there is a deficiency, the Regular
member shall be liable for the deficiency. If the
Facility is indebted to the Regular member, the
Facility shall have the right to set-off such
indebtedness against all amounts due the Facility on
all repayment obligations created here under, without
regard to when such indebtedness may be due and
payable.
CREDIT REPORTING
(11) Required reports. The Regular member shall file
such reports and provide such information as may be
required by the Facility from time to time.

(Signature)

Chief Elected Official (Board)

(Print or Type Official’s Name)

(Signature)

Print or Type Treasurer’s Name

CLF-8703

OMB Control #:3133-0061

CONSTRUCTION AND MODIFICATION
(12) Governing law. This agreement shall be construed
under and governed by the law of the Commonwealth
of Virginia, including the Uniform Commercial Code
as adopted and amended from time to time by the
Commonwealth of Virginia, and the terms used in
such Code shall have the same meaning when used in
this agreement. All references to the Uniform
Commercial Code in this agreement are to such Code
as adopted and amended from time to time by the
Commonwealth of Virginia. Unless the context of
this agreement requires otherwise, the terms used in
such Code shall have the same meaning when used in
this agreement. Unless the Uniform Commercial
Code or the context of this agreement otherwise
requires, the terms defined in the regulations
prescribed by the NCUA Board on behalf of the
Facility shall have the same meanings when used in
this agreement.
(13) Modification procedures. Thus agreement may be
modified from time to time by the NCUA Board.
Any such modifications shall be published in the
Federal Register and shall become a part of this
agreement as of the effective date specified in the
Federal register. The modification shall apply to all
advances of Facility funds after such effective date.
All such modifications are a part of this agreement,
including modifications that occurred prior to the
signing of this agreement.
(14) Communication. Unless otherwise directed by the
facility, all applications, reports, notifications, and
other communications from the Regular member to
the Facility shall be filed with a Facility lending
officer.
(Accepted By)

(Date Accepted)

Treasurer (Board)

(Signature)

NCUA Central Liquidity Facility

(Date of Execution of this Agreement)

C2 - 6