The Central Liquidity Facility ( CLF ) is a mixed-ownership United States (U.S.) government corporation created to improve the general financial stability of credit unions by serving as a liquidity lender to credit unions experiencing unusual or unexpected liquidity shortfalls. Member credit unions own the CLF which exists within the National Credit Union Administration (NCUA). The President of the CLF manages the facility under the oversight of the NCUA Board.
6-761: The Central Liquidity Facility was created by the U.S. Congress in 1998 with the National Credit Union Central Liquidity Facility Act, Subchapter III of the Federal Credit Union Act . The primary purpose of the CLF is to provide loans to credit unions to meet short or long term liquidity needs. It performs the same general functions for credit unions that the Federal Reserve System performs for member banks. The Central Liquidity Facility
12-646: A credit union may be chartered under either federal or state law , a system known as dual chartering , which is still in existence today. Credit union law in the U.S. built on earlier legislation such as that developed by Franz Hermann Schulze-Delitzsch in Germany and Alphonse Desjardins in Canada. Among the individuals responsible for formulating credit union legislation in the United States were Edward Filene , Pierre Jay and Roy Bergengren . The Act
18-531: Is amended periodically to evolve and remain a modern credit union law. This contemporary law, coupled with the NCUA Board's commitment to reduce regulatory burden, enables federal credit unions to offer a variety of services to meet the financial needs of their members. For example, in addition to basic passbook share, many federal credit unions offer share drafts, share certificates, and credit cards. Federal credit unions organized and operated in accordance with
24-503: Is backed by the credit of the U.S. government. The CLF may borrow up to 12 times its subscribed capital stock and surplus (12 USC 1795f(a)(4)(A)). CLF is organized into five regional branches to serve different states. To become a member, credit unions purchase stock in the Central Liquidity Facility, at an amount equal to 1/2 of 1% of an average of six months of their unimpaired capital and surplus or $ 50 (whichever
30-468: Is greater). The Central Liquidity Facility is a 501(c)(1) organization . [REDACTED] This article incorporates public domain material from the United States Government Federal Credit Union Act The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit , cooperative credit unions . This Act established
36-774: The federal credit union system and created the Bureau of Federal Credit Unions , the predecessor to the National Credit Union Administration , to charter and oversee federal credit unions. The general provisions in the Federal Act were based on the Massachusetts Credit Union Act of 1909, and became the basis of many other state credit union laws. Under the provisions of the Federal Credit Union Act,
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