February 11, 2013 – 4:06 pm

Community Development Federal Credit Union, is the second first  insured credit union to be placed into  conservatorship in 2013, as The National Credit Union Administration (NCUA) has assumed control of service and operations.  The members held approximately $2 million in assets.

 The National Credit Union Administration (NCUA) today assumed control of service and operations at NCP Community Development Federal Credit Union of Norfolk, Va.

NCUA will work to resolve issues affecting the institution’s safety and soundness while continuing normal member services. Deposits at NCP Community Development Credit Union remain protected. Administered by NCUA, the National Credit Union Share Insurance Fund continues to insure individual accounts at NCP Community Development Federal Credit Union up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the U.S. Government.

NCP Community Development Federal Credit Union is a full-service financial institution with $2 million in assets, according to its most recent Call Report. NCP has served a low-income community in the Hampton Roads area for 14 years. Service to NCP Community Development Federal Credit Union’s 709 members will continue uninterrupted. Members can continue to conduct normal financial transactions, including deposit and access funds, make loan payments and use shares.
The decision to conserve a credit union enables the institution to continue regular operations with expert management in place, correcting previous service and operational weaknesses. The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the Share Insurance Fund. NCP Community Development Federal Credit Union is the first federally insured credit union placed into conservatorship in 2013.
Members who have questions about the conservatorship may review the NCP Community Development Federal Credit Union Frequently Asked Questions document attached to this release and found online here.

Comments

    Comment on this post! (Requires free membership in the Implode-Explode forums!)