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NCUA announced today that it plans to fully repay the $1 billion outstanding balance on the agency's borrowing line with the Treasury Department this month. With this final payment, the Temporary Corporate Credit Union Stabilization Fund's outstanding borrowings will be fully paid off.

"NAFCU and our members applaud NCUA Board Chair Rick Metsger and NCUA Board Member J. Mark McWatters for their steadfast efforts and leadership on this vital matter," said NAFCU President and CEO Dan Berger. "This milestone is a testament to the safety and soundness of the credit union industry.

"NAFCU will continue to urge the agency to be fully transparent in how and when the funds will be refunded to credit unions," he added. "NAFCU will remain vigilant in ensuring that NCUA manages the fund in a way that is most beneficial to credit unions."

NCUA reminded that no funds will be available to provide federally insured credit unions with an immediate rebate of stabilization fund assessments. Also, no funds are available, the agency said, for any recoveries by investors with claims for depleted capital from the failed corporate credit unions. NCUA said it first must satisfy any outstanding senior obligations of the fund and corporate credit union asset management estates.

The agency said information would be provided in the near future about the timing of potential rebates and capital recoveries.

The TCCUSF was created in 2009 with a loan from Treasury of $5.1 billion, and credit unions have paid $4.8 billion in assessments throughout the stabilization program.

NCUA has recovered more than $4.3 billion in litigation related to the sale of faulty securities sold to corporate credit unions. Net proceeds are used to pay claims against five failed corporate credit unions, including those of the stabilization fund, and are expected to provide some offset to the assessments credit unions have paid for stabilization. Other suits are still in progress.