March 24, 2010 – 11:29 am

Tracy Federal Credit Union, went from the frying pan into the fire as Federal placed the ailing institution into conservatorship on Friday and then put the ailing institution out of it’s misery today turning it over to the Valley First Credit Union of Modesto.

The 5,900 members of Tracy Federal Credit Union of Tracy are now members of Valley First Credit Union of Modesto, which has taken over after the National Credit Union Administration shut down the Tracy bank. NCUA is an independent federal agency that regulates, charters and supervises federal credit unions

Member funds are federally insured by the National Credit Union Share Insurance Fund up to at least $250,000.
Tracy Federal Credit Union was a full service credit union, with assets of $24 million, that provided financial services to residents of the city of Tracy.

With the rebranding, the Tracy operations will become Valley First’s eighth branch.
NCUA did not say what prompted their action. The Federal Credit Union Act authorizes it to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the National Credit Union Share Insurance Fund.

Visit the NUCA webpage for more on Tracy Federal Credit Union.