Member Deposits Insured up to $250,000; Member Services Uninterrupted
(June 24, 2011) Ė The National Credit Union Administration (NCUA) today assumed control of service and operations at Borinquen Federal Credit Union of Philadelphia. While continuing normal member services, NCUA will work to resolve issues affecting the institutionís safety and soundness.
Deposits at Borinquen Federal Credit Union remain protected. Administered by NCUA, the National Credit Union Share Insurance Fund (NCUSIF) continues to insure individual accounts at Borinquen Federal Credit Union up to $250,000. The NCUSIF, like the FDICís Deposit Insurance Fund, has the backing of the full faith and credit of the U.S. Government.
With $7 million in assets according to its most recent Call Report, Borinquen Federal Credit Union is a full-service financial institution that has served a low-income community in Philadelphia for 37 years. Service to Borinquen Federal Credit Unionís 8,600 members will continue uninterrupted. Members can continue to conduct normal financial transactionsódeposit 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 membersí interests, or protect the NCUSIF. Borinquen Federal Credit Union is the seventh federally insured credit union placed into conservatorship during 2011.