Connecticut Regulators Shutter Credit Union

Posted by Orb Staff on April 09, 2010 No Comments
Categories : Residential Mortgage

Connecticut State Banking Commissioner Howard F. Pitkin has declared that the board of directors of South End Mutual Benefit Association, a credit union located in Bloomfield, Conn., has passed a resolution to cease operation and terminate its business. Pitkin petitioned the Superior Court for the Judicial District of Hartford County to name the National Credit Union Administration (NCUA) as receiver.

The Connecticut Department of Banking assumed control of South End Mutual Benefit Association and appointed NCUA receiver after discussions with credit union management revealed the institution's difficulty in meeting regulatory requirements and addressing deficiencies in credit administration, lending practices, internal controls and audit.

At the time of liquidation, the credit union had $2.5 million in assets and served 360 members. The credit union began operations in 1945, and served all residents of Hartford and its neighboring communities.

Member accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF) – a federal fund managed by NCUA and backed by the full faith and credit of the U.S. government.

SOURCE: Connecticut State Banking Department

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