Liquidity and contingency funding plans.

CFR · 2024-01-01 · US · Title 12

(a) Any credit union insured pursuant to Title II of the Act that has assets of less than $50 million must maintain a basic written policy that provides a credit union board-approved framework for managing liquidity and a list of contingent liquidity sources that can be employed under adverse circumstances. (b) Any credit union insured pursuant to Title II of the Act that has assets of $50 million or more must establish and document a contingency funding plan (CFP) that meets the requirements of paragraph (d) of this section. (c) In addition to the requirement specified in paragraph (b) of this section to establish and maintain a CFP, any credit union insured pursuant to Title II of the Act that has assets of $250 million or more must establish and document access to at least one contingent federal liquidity source for use in times of financial emergency and distressed economic circumstances. These credit unions must conduct advance planning and periodic testing to ensure that contingent funding sources are readily available when needed. A credit union subject to this paragraph may demonstrate access to a contingent federal liquidity source by: (1) Maintaining regular membership in the Central Liquidity Facility (Facility), as described in part 725 of this chapter; (2) Maintaining membership in the Facility through an Agent, as described in part 725 of this chapter; or (3) Establishing borrowing access at the Federal Reserve Discount Window by filing the necessary lending agr

official document · source cfr-2024 · id 12:§ 741.12