Liquidity Needs [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 1795a (1) [Title 12. Banks and Banking; Chapter 14. Federal Credit Unions; Central Liquidity Facility], the term liquidity needs means “the needs of credit unions primarily serving natural persons for--

(A) short-term adjustment credit available to assist in meeting temporary requirements for funds or to cushion more persistent outflows of funds pending an orderly adjustment of credit union assets and liabilities;

(B) seasonal credit available for longer periods to assist in meeting seasonal needs for funds arising from a combination of expected patterns of movement in share and deposit accounts and loans; and

(C) protracted adjustment credit available in the event of unusual or emergency circumstances of a longer term nature resulting from national, regional or local difficulties.”