[Federal Register Volume 74, Number 139 (Wednesday, July 22, 2009)]
[Notices]
[Pages 36271-36273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17339]


=======================================================================
-----------------------------------------------------------------------

NATIONAL CREDIT UNION ADMINISTRATION


Temporary Corporate Credit Union Liquidity Guarantee Program

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice contains information about revisions to the 
National Credit Union Administration's Temporary Corporate Credit Union 
Liquidity Guarantee Program (TCCULGP).

ADDRESSES: 1775 Duke Street, Alexandria, Virginia 22314.

FOR FURTHER INFORMATION CONTACT: Dianne Salva, Trial Attorney, Office 
of General Counsel, at the above address or telephone (703) 518-6540.

SUPPLEMENTARY INFORMATION: 

[[Page 36272]]

    On October 16, 2008, the National Credit Union Administration Board 
approved the TCCULGP. Under the terms of this original TCCULGP, the 
National Credit Union Share Insurance Fund (NCUSIF) guaranteed certain 
unsecured debt of participating corporate credit unions (corporates) 
issued from October 16, 2008 through June 30, 2009, and maturing on or 
before June 30, 2012. NCUA published notice of the original TCCULGP in 
the Federal Register. 73 FR 68450 (November 18, 2008). NCUA also 
published a list of corporates that agreed to participate in the 
original TCCULGP on NCUA's Web site at http://www.ncua.gov/CorporateCU/index.htm.
    On May 21, 2009, the NCUA extended the terms and conditions of the 
TCCULGP and revised the fees charged to corporates participating in the 
program. It published notice of those changes in the Federal Register. 
74 FR 25777 (May 29, 2009). On June 18, 2009 the NCUA Board decided to 
legally obligate the TCCUSF for any liability arising from the TCCULGP. 
At its July 16 meeting, the NCUA Board also decided to refine and 
improve the TCCULGP, by amending the agreement with participating 
corporates and adding sample forms that investors may use to file a 
claim for payment and assign their interests in the investment, in the 
event a default occurs under the program.
    The Proof of Claim form and Assignment reproduced below are for the 
reference of interested parties. They are also available on the NCUA 
Web site at http://www.ncua.gov/Resources/CorporateStabilization/Index. 
While these are examples of such documents that the NCUA Board finds 
acceptable, their use is not mandatory. Investors who wish to use other 
written documents to file their claim or assign their interests may do 
so, as long as the documents they submit are acceptable to the NCUA 
Board in its capacity as manager of the TCCUSF.

FORM OF TCCULGP DEMAND AND PROOF OF CLAIM

[Date]-----------------------------------------------------------------

Executive Director, National Credit Union Administration, 1775 Duke 
Street, Alexandria, VA 22314-3428

Attention:-------------------------------------------------------------

    The undersigned is the holder (``Holder'') or a duly authorized 
representative (``Representative'') of a holder or holders of 
Temporary Corporate Credit Union Stabilization Fund (``TCCUSF'') 
guaranteed debt under the ------------------ [insert title of 
governing document and CUSIP Number, if any] dated -------------- 
[insert month, day and year] by and between -------------- Credit 
Union as the Issuer, and the undersigned (as amended from time to 
time, the ``Indenture''), pursuant to which the TCCUSF-guaranteed 
debt obligations were issued by ----------Credit Union and are now 
outstanding. The undersigned Holder, or Representative on behalf of 
all holders, hereby demands payment of the following amounts that 
were due and payable on -------------- [insert month, day and year] 
and that are now in default, such default not having been cured as 
of the date hereof:

Principal:

-----------------------------------------------------------------------

Interest:

-----------------------------------------------------------------------

together with payment when due of such other amounts as shall be 
required to satisfy the TCCUSF's guarantee obligations under the 
Temporary Corporate Credit Union Liquidity Guarantee Program 
(``TCCULGP'').

    Payment of the foregoing amounts should be made to the 
undersigned by wire transfer to the following account:

Financial Institution Name:

-----------------------------------------------------------------------

ABA Routing Number:

-----------------------------------------------------------------------

Account Number:

-----------------------------------------------------------------------

Special Instructions:

-----------------------------------------------------------------------

    The undersigned hereby makes the following certifications, which 
certifications are true and correct as of the date hereof:
    1. The undersigned is either:
    [square] The Holder; or
    [square] The authorized Representative of all debtholders under 
the Indenture.
    2. If the undersigned is the Holder, the undersigned further 
certifies that
    (a) It hereby does make an assignment of each right, title and 
interest in the TCCUSF-guaranteed debt to the TCCUSF and to effect 
the transfer to the TCCUSF of all of Holder's claims in any 
insolvency proceeding. Included herewith is the executed and 
completed form of assignment of the Holder's interest in the TCCUSF-
guaranteed debt and includes the right of the TCCUSF to receive any 
and all such distributions on the debt from the proceeds of the 
liquidation estate; and
    (b) The undersigned hereby certifies that this demand is being 
made within 90 days of the occurrence of the payment default upon 
which the demand is made. The failure of the Holder to make demand 
for payment will deprive the Holder of all further rights and 
remedies with respect to guarantee claims.
    3. If the undersigned is the authorized Representative of all 
debtholders under the Indenture, the undersigned further certifies 
that
    (a) It has the financial capacity to act as Representative since 
the undersigned has sufficient capital and surplus to act as 
Representative under the eligibility provisions of the Indenture 
(Section --------), as evidenced by a current report of condition of 
the undersigned Representative. Such report of condition may take 
the form of a report of examination and is attached as Exhibit ----. 
If the governing documents do not contain a financial eligibility 
requirement, the undersigned or an affiliate thereof must be ``well 
capitalized,'' as that term is defined in 12 U.S.C. Sec.  
1831o(b)(1) if the Representative is a bank, or 12 U.S.C. Sec.  
1790d or applicable NCUA regulations if the Representative is a 
credit union;
    (b) It has the organizational capacity to act as Representative 
since the undersigned is a [i.e. New York banking corporation] with 
authority to commence business and to exercise corporate trust 
powers, as evidenced by the Organization Certificate of the 
undersigned, a copy of which is attached as Exhibit --;
    (c) It has the exclusive authority to act on behalf of each and 
every debtholder under the Indenture and has a fiduciary 
responsibility to each such debtholder. The undersigned is expressly 
designated as the duly authorized representative of such holders for 
purposes of making claims and taking other permitted or required 
actions under the Program, as evidenced in Section ---- of the 
Indenture on Page --. The indenture is attached hereto in its 
entirety as Exhibit --.
    (d) It is expressly authorized to, and hereby does, make an 
assignment of each right, title and interest in the TCCUSF-
guaranteed debt to the TCCUSF and to effect the transfer to the 
TCCUSF of each such holder's claims in any insolvency proceeding. 
Evidence of such authorization is provided in Section ---- of the 
Indenture on page ----. The Indenture is attached hereto in its 
entirety as Exhibit --. Also included herewith is the executed and 
completed form of assignment of the Holder's interest in the TCCUSF-
guaranteed debt and includes the right of the TCCUSF to receive any 
and all such distributions on the debt from the proceeds of the 
liquidation estate.
    (e) This demand is being made within 90 days of the occurrence 
of the payment default upon which the demand is made. The failure of 
the authorized Representative to make demand for payment will 
deprive the debtholder or debtholders of all further rights and 
remedies with respect to guarantee claims.

HOLDER

By:
-----------------------------------------------------------------------

Printed Name:
-----------------------------------------------------------------------

Title:
-----------------------------------------------------------------------

-----------------------------------------------------------------------
(Tax Identification No.)

-----------------------------------------------------------------------

-----------------------------------------------------------------------
(Mailing Address)

-----------------------------------------------------------------------
(Telephone Number)

-----------------------------------------------------------------------

(Fax Number)

OR

REPRESENTATIVE

By:
-----------------------------------------------------------------------

Printed Name:
-----------------------------------------------------------------------


[[Page 36273]]

-----------------------------------------------------------------------
Title:
-----------------------------------------------------------------------

-----------------------------------------------------------------------
(Tax Identification No.)
-----------------------------------------------------------------------

-----------------------------------------------------------------------
(Mailing Address)
-----------------------------------------------------------------------
(Telephone Number)

-----------------------------------------------------------------------
(Fax Number)

Form of TCCULGP Assignment

    The undersigned is the holder (``Holder'') or a duly authorized 
representative (``Representative'') of a holder or holders of 
Temporary Corporate Credit Union Stabilization Fund (``TCCUSF'') 
guaranteed debt under the ------------------ [insert title of 
governing document and CUSIP Number, if any] dated -------------- 
[insert month, day and year] by and between ---------- Credit Union 
(``Issuer''), as the Issuer, and the undersigned (as amended from 
time to time, the ``Agreement''), pursuant to which the TCCUSF-
guaranteed debt obligations were issued by -------- Credit Union and 
are now outstanding. The undersigned Holder, or Representative on 
behalf of all holders, has demanded payment of amounts due and 
payable, and that are now in default, such default not having been 
cured as of the date hereof.
    In conjunction with that demand, the undersigned Holder, or 
Representative on behalf of all holders, has executed and submits 
this Assignment made pursuant to the terms of Section [------] of 
the Agreement. Capitalized terms used herein and not otherwise 
defined herein shall have the meanings assigned thereto in the 
Agreement.
    For value received, the undersigned Holder, or Representative on 
behalf of all holders, (the ``Assignor''), hereby assigns to the 
National Credit Union Administration (``NCUA'') TCCUSF, without 
recourse, all of the Assignor's respective rights, title and 
interest in and to: (a) The promissory note or other instrument 
evidencing the debt issued under the Agreement (the ``Note''); (b) 
the Agreement pursuant to which the Note was issued; and (c) any 
other instrument or agreement executed by the Issuer regarding 
obligations of the Issuer under the Note or the Agreement 
(collectively, the ``Assignment'').
    The Assignor acknowledges and agrees that this Assignment is 
subject to the Agreement and to the following:
    1) In the event the Assignor receives any payment under or 
related to the Note or the Agreement from a party other than the 
TCCUSF (a ``Non-TCCUSF Payment''):
    a. After the date of demand for a guarantee payment on the 
TCCUSF pursuant to the TCCULGP, but prior to the date of the 
TCCUSF's first guarantee payment under the Agreement, the Assignor 
shall promptly but in no event later than five (5) Business Days 
after the receipt notify the TCCUSF of the date and the amount of 
such Non-TCCUSF Payment and shall apply such payment as payment made 
by the Issuer, and not as a guarantee payment made by the TCCUSF 
under the TCCULGP, and therefore, the amount of such payment shall 
be excluded from this Assignment; and
    b. After the TCCUSF's first guarantee payment under the 
Agreement, the Assignor shall forward promptly to the TCCUSF such 
Non-TCCUSF Payment in accordance with the payment instructions 
provided in writing by the TCCUSF.
    2) Acceptance by the Assignor of payment pursuant to the TCCULGP 
for its own behalf, or in the case of a Representative Assignor, on 
behalf of the holders, shall constitute a release by such Holder or 
holders of any liability of the TCCUSF and the NCUA under the 
TCCULGP with respect to such payment.
    The person who is executing this Assignment on behalf of the 
Assignor hereby represents and warrants to the NCUA and the TCCUSF 
that he/she/it is duly authorized to do so.
    IN WITNESS WHEREOF, the Assignor has caused this instrument to 
be executed and delivered this ------ day of --------, 20--.

Very truly yours,

[Assignor]

By:
-----------------------------------------------------------------------

Printed Name:
-----------------------------------------------------------------------

Title:-----------------------------------------------------------------
    For more information about the original and revised TCCULGPs, 
including terms, conditions, participants, and forms, interested 
parties may contact Senior Analyst Dave Shetler of the NCUA Office 
of Corporate Credit Unions.

    Dated: July 16, 2009.
Mary Rupp,
Secretary of the Board.
[FR Doc. E9-17339 Filed 7-21-09; 8:45 am]
BILLING CODE 7535-01-P