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Liquidity Services

Line of Credit

Corporate Central will establish a Line of Credit for your credit union in an amount deemed appropriate and agreed upon by your credit union and Corporate Central.  Once the limit is determined you may access a variety of liquidity sources that we offer.

Settlement Loans

A Settlement Loan is established to ensure the availability of funds to cover all settlement transactions on any given day.  If at any time funds are not sufficient to cover daily settlement transactions and/or fees, Corporate Central may draw on your Line of Credit and advance a settlement loan in an amount necessary to meet the predetermined minimum deposit balance that is required to open a settlement account.  Depending on which type of settlement account your credit union establishes, a settlement loan can be advanced manually or automatically at or before the end of the business day.

The interest rate is declared by approximately 3:00pm CT each business day.  The interest rate for a non-business day is the same as the previous business day.

Interest Payment: Interest on a Settlement Loan is due as funds become available.

Principal Payment: After interest is collected, principal is due as funds become available.

Interest Calculations: Interest is calculated based on an actual (365-day) basis.

Fixed-Rate Term Loans

Fixed-Rate Term Loans with maturities ranging from less than one-month to seven-years are available to members with an approved Line of Credit.  Members have the option of choosing bullet maturities (100% principal due at maturity) or amortizing the principal and interest payments over the life of the loan with payments due monthly, quarterly, semi-annually or at maturity.

Interest Rate: The interest rate is disclosed for each term loan on the agreement and remains fixed for the life of the loan.

Interest Payment: Interest is collected monthly, quarterly, semi-annually, annually or at maturity.  Interest payment terms are disclosed on each specific Fixed-Rate Term Loan agreement.

Interest Calculations: Interest is calculated based on an actual (365-day) basis.

Variable-Rate Term Loans

Variable-Rate Term Loans with maturities ranging from three-months to seven-years are available to members with an approved Line of Credit.  Members have the option of choosing a bullet maturity (100% principal due at maturity) or amortizing the payments over the life of the loan with payments due monthly, quarterly, semi-annually or at maturity.

Interest Rate: The interest rate index is disclosed for each term loan on a term note and loan agreement and will be reset periodically, at a spread to the stated index.  Indexes include, but are not limited to, the following:  Prime Lending Rate, One-Month LIBOR, or Three-Month LIBOR.  Loans indexed to LIBOR are reset monthly or quarterly on the 25th of the month.

Interest Payment: Interest is collected monthly, quarterly, semi-annually or at maturity.  Whichever method is used will be disclosed on each specific Variable-Rate Term Loan agreement.

Interest Calculations: Interest is calculated based on an actual (365-day) basis.

Variable-Rate Demand Loans

The Variable-Rate Demand Loan is a master loan under which a credit union may borrow not less than $1,000,000 or multiples thereof.  The maximum a credit union may advance using this liquidity facility shall be predetermined and disclosed on the Variable-Rate Demand Loan note and loan agreement.  The Variable-Rate Demand Loan can be executed on any Tuesday on which Corporate Central is open for business (if a Tuesday falls on a non-business day, the rate will be set the next business day).  When a credit union wishes to borrow funds, the credit union will give notice to Corporate Central by phone on the day that the credit union wishes to incur the loan.  At any time, Corporate Central may demand repayment of part or all the principal of the loan outstanding on any day the credit union is open for business.  Corporate Central shall give notice by phone and payment will be due in full by 9:00am CT the next business day.  The credit union shall have the right to repay some, or all, of the principal owed on any Tuesday on which Corporate Central is open for business, provided the remaining principal balance is at least the minimum required.  The credit union shall give notice of payment by phone no later than 4:00pm CT, on the repayment day.

Interest Rate: The interest rate is set by Corporate Central at our discretion.  Such rate will be set, announced and posted every Tuesday and confirmed to the credit union in a monthly report.  The rate is declared by approximately 9:30am CT on Tuesdays.

Interest Payment: Interest is paid and posted on the last business day of the month.  All accrued interest is due at any time the loan balance is paid in full.

Interest Calculations: Interest is calculated on the basis of a 360-day year.

View Current Rates

Demand for federal sources of liquidity is required for some credit unions due to NCUA’s proposed rule on Maintaining Access to Emergency Liquidity (12 CFR Part 741, published December 2011, updated July 2012).   Corporate Central offers access to the Federal Reserve Bank's (FRB) Discount Window without establishing a direct relationship with the Fed.  Once enrolled, funds can be requested through the FRB for swift deposit in the members Corporate Central account.

Public agencies and businesses can provide your credit union with valuable sources of deposits. Those deposits often require supplemental collateral because the amounts exceed NCUA coverage. Corporate Central can provide a useful alternative to pledging securities to collateralize those deposits. A valuable and popular solution is to utilize a low-cost standby Letter of Credit provided by Corporate Central.

Learn More

When you need liquidity, your credit union can issue federally insured CDs through SimpliCD, making your deposit offerings to a nationwide market of potential investors.  You are able to raise funds quickly, all in one simple step.  It’s that simple.

Learn More View Current Rates

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Corporate Central Credit Union
6262 South Lowell Place, Muskego, WI 53150
Phone: (800) 242-4747 | Fax: (414) 427-3700
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