How to Establish Access to Approved
Emergency Liquidity Sources

The Central Liquidity Facility or The Federal Reserve Bank Discount Window


Central Liquidity Facility (CLF) – Step-by-Step


Step 1 – Learn.
Familiarize yourself with the CLF by visiting https://www.ncua.gov/services/Pages/central-liquidity-facility.aspx


Step 2 – Calculate.
Alloya’s Emergency Liquidity & Planning microsite, at www.alloyacorp.org/clf, includes a CLF Stock Calculator. Use the calculator to determine the funds needed from your credit union to capitalize the CLF, and also the amount required to hold “on call.”


Step 3 – Discuss.
Contact Alloya Corporate or a CLF representative for answers to your questions.


Step 4 – Apply.
Visit https://www.ncua.gov/Resources/Documents/CLF/how-to-apply-clf-application.pdf to obtain the CLF application. Complete the application, include your credit union’s check in the amount of the required capital, payable to the Central Liquidity Facility. (See below for wire option). Send your application and check to:

Alloya Corporate FCU
ATTN: Lending Department
4 Tower Place
Suite 500
Albany, NY 12203

Upon receipt, Alloya will review then forward the packet to the CLF. If you choose to conduct a wire transfer from Alloya to the CLF, Alloya will confirm the wire amount and instructions, and initiate the wire.


Step 5 – Membership.
Receive notification from the CLF confirming membership (subject to approval).


Step 6 – Testing.
Conduct a test transfer of funds from the CLF to verify delivery instructions. This test satisfies the regulatory requirement for “periodic testing to ensure contingent funding sources are readily available as needed” pursuant to §741.12(c).


Federal Reserve Bank (FRB) Discount Window Correspondent Service – Step-by-Step


Step 1 – District.
Visit www.frbdiscountwindow.org/map.cfm?hdrID=32&dtlID to locate your Fed district.


Step 2 – Apply.
Complete the five agreements from the Required Documents packet, available from www.frbdiscountwindow.org/required.cfm?hdrID=19&dtlID=42. Submit forms 1, 2, 3 and 5 directly to your Fed district (Step 1) for quicker processing. Form 4, page 1, should be printed on your credit union’s letterhead, completed and mailed to Alloya.

Alloya Corporate FCU
ATTN: Lending Department
4 Tower Place
Suite 500
Albany, NY 12203

If you prefer, the package of required documents can be sent to Alloya, and we will forward it to your FRB.


Step 3 – Discuss.
Contact your representative at the FRB to discuss collateral options (for contact information, see Step 1, Loan Requests and Collateral Processing).


Step 4 – Select.
Choose the collateral option that is best suited for your needs


Step 5 – Collateral.
Complete required collateral applications/documents/reports/instructions from your FRB.

Optional – If you choose to pledge specific securities that:

a. Are held in safekeeping by Alloya and
b.  Have been approved by the FRB as acceptable collateral
… Then, email the CUSIP and PAR amounts, the Federal Reserve Bank’s DTC Participant Number and specific instructions to LendingDepartment@alloyacorp.org.


Step 6 – Testing.
Advance a test loan from the Discount Window to satisfy regulatory requirement for “periodic testing to ensure contingent funding sources are readily available as needed” pursuant to §741.12(c). To test access to the Discount Window:

a.    Call the Fed to request a test to confirm access to the Discount Window.

b.    Email DiscountWindow@alloyacorp.org with the advance amount requested, and specify the Federal Reserve Bank the funds will come through.

c.     Confirm the following morning that the funds were placed into the account at Alloya.


Questions?

Please contact Alloya Corporate FCU’s Lending Department at (800) 253-0053, ext. 4788 or LendingDepartment@alloyacorp.org