Large California CU placed in conservatorship

ALEXANDRIA, Va. (9/4/08)—The National Credit Union Administration (NCUA) has been named conservator of state-chartered Valley CU, San Jose, Calif., to ensure safe and sound credit union operations and continuing service to members.

The California Division of Financial Institutions appointed NCUA as conservator because of the declining financial condition of the $257 million-asset credit union, according to an NCUA release. The credit union has almost 27,000 members, three branch offices, and was originally chartered in 1953 to serve telephone company employees.

In announcing it accepted the role of conservator, the NCUA noted that member accounts are insured to at least $100,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF, the agency reminded, is backed by the full faith and credit of the Unite States government.

The NCUA added that excess insurance protection is currently provided by private insurer American Share Insurance of Dublin, Ohio.

Members with questions about their insurance coverage can contact NCUA's Region V Division of Insurance at 602-302-6000 Monday through Friday during business hours.

Use the resource link below to access the NCUA website.

courtesy of cuna.org