Tricorp’s lines-of-credit provide access to a source of liquidity for member credit unions – liquidity that may be used for settlement shortfalls and to cover unexpected loan demand, high share withdrawals, or seasonal outflows. To meet credit unions’ day-to-day funding needs, Tricorp’s pre-approved line-of-credit can help you through your liquidity crunch.
Once a credit union becomes a full member of Tricorp, a line-of-credit is established. For those occasions when your Overnight Account drops below your average daily settlement balance, your line-of-credit is automatically accessed. Tricorp’s line-of-credit carries a below market variable rate that is sensitive to changes in the market.
Credit unions can raise liquidity quickly and easily by issuing certificates through the SimpliCD (“simplicity”) Issuance program. SimpliCD is owned and operated by Primary Financial Company LLC, a credit union service organization owned jointly by corporate credit unions nationwide. They serve as custodian and administer the SimpliCD Issuance program.
Your credit union’s certificates are marketed through the SimpliCD Issuance program which taps into the national market of credit unions and banks looking to purchase institutional CDs. With one phone call, your credit union can issue up to $50 million or more in deposits in a single transaction to a network of more than 4,300 credit union investors.
Benefits of Issuing
- Centralized way to raise funds and generate liquidity
- Access to 4,300 potential credit union investors nationwide through the SimpliCD program.
- Competitive alternative to other funding methods
- Assistance in developing the terms of issuance
- Ability to pool investors into one CD
- Credit unions receive interest payments from one entity – Tricorp – with a single wire transfer, eliminating the need to track and collect interest from each investing institution.
- No subscription or broker fees
For an overview of the basic tenets of working with SimpliCD on issuing, view a video at the SimpliCD YouTube channel.
A secured loan is one that is secured by your credit union’s marketable securities. Securities offered as collateral are maintained at Tricorp and loan proceeds are advanced for a specific period of time.
With a secured loan, maturity dates on the loan cannot exceed the maturity of the collateral. Interest rates may be fixed or variable and are set when the loan is established.
Letters of Credit
Tricorp can act on behalf of a member credit union by providing documentary evidence that guarantees payment to a third party. Many utility companies or municipals will accept a letter of credit in lieu of a monetary deposit.
These Letters of Credit are issued for a specific period of time and amount. They are non-negotiable, non-assignable and are share secured. Tricorp’s Letter of Credit is the low-cost answer to payment guarantees.
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 when a credit union experiences unusual or unexpected liquidity shortfalls. As a government agency within NCUA, the CLF has access to the U.S. Treasury.
Tricorp can act as your CLF correspondent to obtain a loan. We will assist member credit unions with submitting credit applications and accompanying documentation requirements to secure loan advances. All members of Tricorp have automatic access to the CLF through their Perpetual Contributed Capital (PCC) account at Tricorp.