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Corporate One Board Unanimously Votes to Prepay Corporate Assessments

Board believes prepayment the right thing to do for members and the movement 

 

7/29/2011—Corporate One Federal Credit Union announced its Board of Directors voted today in their monthly board meeting to participate in the NCUA’s Voluntary Prepayment Assessment Program. The Voluntary Prepayment Assessment Program was designed by the NCUA in response to credit union requests whereby some credit unions were looking for ways to better manage the required corporate stabilization assessments in 2011 and 2012. The NCUA is seeking a minimum of $500 million in prepayment pledges from credit unions before instituting the program.

“Our board was resolute in the fact that since Corporate One is in a strong financial condition, we should absolutely do what we can to help our member credit unions manage their 2011 and 2012 assessments, especially at a time when so many are experiencing challenging economic times,” said Lee Butke, Corporate One’s president and CEO. “We support the NCUA’s efforts to help credit unions better manage these assessments, and we’re proud to be able to help them smooth out those costs,” he added.

NCUA currently estimates 2011 corporate stabilization assessments to be 24.9 basis points. If at least $500 million in commitments are received, the NCUA will reduce the assessment by 6.4 basis points, resulting in a net 18.5 basis points for the 2011 assessment. For individual federally insured credit unions, the minimum amount of prepayment is the greater of $1,000 or .05% of insured shares as of 3/31/2011 and the maximum is .48% of insured shares as of 3/31/2011. Corporate One will be committing the maximum amount allowable.

Prepayment of assessments does not change the ultimate cost of the corporate resolution plan. The funding provided through prepayments only affects the timing of expensing stabilization fund assessments.

About Corporate One Federal Credit Union

Corporate One Federal Credit Union is a leading wholesale financial services provider to more than 775 of America’s credit unions. With more than $4.5 billion in assets under management, Corporate One offers correspondent services including ATM/debit cards, share draft imaging, and depository and electronic payment services as well as investment solutions to credit unions across the United States. Corporate One also developed and manages Alliance One, one of the nation’s largest non-network-specific ATM selective-surcharging groups. For more information, visit www.corporateone.coop.