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If Southwest Corporate recovers losses on any of its bonds, can that money go to member credit unions MCAs?

April 26, 2017bonds corporate credit losses MCAS money recovers Southwest Union

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If Southwest Corporate recovers losses on any of its bonds, can that money go to member credit unions MCAs?

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Not according to guidance provided by NCUA. The essential function of MCAs is to serve as an additional reserve of capital to absorb losses in excess of retained earnings. Southwest Corporate could only replenish MCAs from recovered losses should the NCUA issue revised guidance allowing such treatment.