Central Liquidity Facility
The Central Liquidity Facility (CLF) is a mixed-ownership 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 NCUA. The president of the CLF manages the facility under the oversight of the NCUA Board.
Please note the CLF is designed for emergency liquidity purposes only.
For Alloya Members Currently Without CLF Membership
While CLF membership is voluntary, it is strongly encouraged andopen to all credit unions that purchase a prescribed amount of stock. As a CLF Correspondent, Alloya can assist credit unions with the process of becoming a direct member of the CLF. Any Alloya member who is a direct member of the CLF works with Alloya for membership and borrowing transactions.
Q: How much can a credit union borrow from the CLF?
A: There is no set limit; your credit union's borrowing maximum is contingent upon CLF approval or creditworthiness including collateral pledged.
Q: What can a credit union use as collateral for the loan?
A: Please review the Collateral Margins Table. Alloya will act as collateral administrator for the CLF and work with you to provide the necessary collateral documentation. In most instances, part of the collateral currently being held by Alloya will be assigned to the CLF for these borrowings.
Q: What are the typical rate and term?
A: They are variable, but typically close to Fed Funds. Most borrowings are for 90-day terms.
For Alloya Members with Previously Established CLF Membership
If your credit union is already a direct member of the CLF, your credit union is covered by Alloya’s Correspondent Member status with the CLF, and no further action is required. You can continue to follow the existing processes for borrowing with Alloya’s assistance.