Member Deposits Remain Protected up to $250,000 by Share Insurance Fund
May 23, 2014 – The Virginia State Corporation Commission has closed Life Line Credit Union, Inc., of Richmond, VA, and appointed the National Credit Union Administration Board as receiver to act as liquidating agent.
Virginia Credit Union, Inc., headquartered in North Chesterfield, VA, assumed all member shares. Virginia Credit Union is a federally insured, state-chartered credit union with assets of nearly $2.6 billion and 232,855 members, according to the credit union’s most recent Call Report.
Life Line Credit Union members will now become members of Virginia Credit Union and should experience no interruption in deposit services. Members with questions about share accounts may contact Virginia Credit Union weekdays beginning May 27 at 804-323-6800 or toll-free at 800-285-6609 between 8 a.m. and 6 p.m. Eastern.
The accounts of the new Virginia Credit Union members remain insured by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States. Individuals may also visit the MyCreditUnion.gov website at any time for more information about their insurance coverage.
NCUA’s Asset Management and Assistance Center will take charge of Life Line’s assets and loans and will issue correspondence to individuals who have loans with the credit union in the near future. Members with further questions about their loans may call toll-free at 877-715-0777 Monday through Friday between 9 a.m. and 6 p.m., Eastern.
The Virginia State Corporation Commission made the decision to close Life Line and discontinue its operations after determining the credit union is insolvent and has no reasonable prospect for restoring viable operations. At the time of liquidation and subsequent assumption by Virginia Credit Union, Life Line was a federally insured, state-chartered credit union that served 2,076 members and had assets of $7.9 million, according to its most recent Call Report. Chartered in 1969, Life Line served employees of the Bon-Secours Richmond Health System and Central Virginia Health Network.
Life Line Credit Union is the fifth federally insured credit union liquidation in 2014.