A tiny credit union that was placed into conservatorship June 18 was closed by its federal regulator July 1, the agency said in a release that alleged violations of federal law and rules.
It is the third credit union the agency has announced closing over a two-week period starting June 23. The previous credit unions to close were Butler Heritage Federal Credit Union (FCU) in Middletown, Ohio, and Soul Community FCU in Austell, Ga.
“The decision to liquidate Aldersgate Federal Credit Union and discontinue operations was made after determining the credit union was insolvent and had no prospect for restoring viable operations,” the National Credit Union Administration (NCUA) said in a release Tuesday. “The credit union violated numerous provisions of the Federal Credit Union Act and NCUA Rules and Regulations, including operating in an unsafe and unsound manner.”
Aldersgate FCU of Marion, Ill., was chartered in 1962. The NCUA said it served the ministerial and probationary members, full time employees, local pastors, clergy persons and diaconal ministers under appointment of the bishop of the Illinois Great Rivers Conference of the United Methodist Church.
Financial data on the NCUA website shows the credit union had 811 members and $10.7 million in assets as of its last call report, which was March 31.
The NCUA said member deposits at Aldersgate FCU remain protected by the National Credit Union Share Insurance Fund (NCUSIF).
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