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What happens to the Paid in Capital (PIC) and/or Membership Capital Accounts (MCA) at retail corporate credit unions?

April 26, 2017accounts Capital corporate credit happens MCA membership paid PIC retail

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What happens to the Paid in Capital (PIC) and/or Membership Capital Accounts (MCA) at retail corporate credit unions?

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US Central and WesCorp will record losses that absorb the PIC and MCA accounts they currently have on deposit. Each member credit union will need to record the loss of that investment and account for it appropriately. A fundamental axiom of the NCUSIF and credit union system is that members share in the risks at their credit union. While we understand it is frustrating for member credit unions to recognize these risks, it is how the system works.