ALEXANDRIA, Va. September 23, 2011 – The National Credit Union Administration (NCUA) today assumed control of service and operations at Chetco Federal Credit Union of Harbor, Ore. While continuing normal member services, NCUA will work to resolve issues affecting the institution.
Deposits at Chetco Federal Credit Union remain federally protected. Administered by NCUA, the National Credit Union Share Insurance Fund (NCUSIF) continues to insure individual accounts at Chetco Federal Credit Union up to $250,000. The NCUSIF, like the FDIC’s Deposit Insurance Fund, has the backing of the full faith and credit of the U.S. Government.
Chetco Federal Credit Union is a community chartered credit union serving Coos and Curry Counties, Ore., and Del Norte County, Calif. Assets were reported at $333 million as of June 30. Service to Chetco Federal Credit Union’s 32,435 members will continue uninterrupted. Members can continue to conduct normal financial transactions—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. During conservatorship, members may therefore continue to conduct business at the credit union.
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 NCUSIF. Chetco Federal Credit Union is the tenth federally insured credit union placed into conservatorship during 2011.
Members who have questions about the conservatorship may review the Chetco Federal Credit Union Frequently Asked Questions document attached to this release.
Yes, member accounts at Chetco Federal Credit Union remain safe and fully insured up to the maximums established in federal law.
The National Credit Union Share Insurance Fund (NCUSIF) insures individual accounts up to $250,000 and joint accounts up to $250,000 per member. The NCUSIF also separately protects IRA and KEOGH retirement accounts up to $250,000.
The National Credit Union Administration (NCUA) placed Chetco Federal Credit Union into conservatorship Sept. 23, 2011.
In conservatorship, NCUA’s priority is to protect the assets of the members of Chetco Federal Credit Union while working to maintain safe-and-sound credit union operations.
An agency of the federal government, NCUA, among other things, operates and manages the NCUSIF. The NCUSIF insures accounts at all federal credit unions including Chetco Federal Credit Union.
A conservatorship means that NCUA has assumed control of a credit union in order to ensure a credit union’s financial stability and safe-and-sound operation. In a conservatorship, NCUA works to address issues related to a credit union’s operations and financial condition while maintaining member service.
Yes, Chetco Federal Credit Union will remain open during the conservatorship.
Through a conservatorship, NCUA seeks to fix operating issues at a credit union with a goal of protecting member assets and seeking a resolution to identified problems.
Chetco Federal Credit Union operates in 8 locations, and service to the credit union’s more than 32,000 members continues.
Coos and Curry Counties in Oregon, and Del Norte County in California.
The credit union has approximately $333 million in assets according to its most recent Call Report.
In working to resolve the issues affecting Chetco Federal Credit Union, NCUA’s top priority is to protect the interests of the credit union’s members. NCUA has no set timeframe for completing this resolution process.
NCUA has made no decisions about the long-term future of the credit union. Continued credit union service for the members, however, is a priority.
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