Member Deposits Remain Insured up to $250,000
ALEXANDRIA, Va. (June 14, 2013) – The National Credit Union Administration has entered into a Letter of Understanding and Agreement with the Valley Pride Federal Credit Union of Plains, Pa., that requires the credit union to take steps to correct unsafe and unsound practices.
The specific steps required of Valley Pride include:
- Engage a qualified individual to reconcile bank and corporate accounts;
- Engage a Certified Public Accountant to perform an opinion audit;
- Obtain training for the board of directors; and
- Implement internal control procedures through the Supervisory Committee.
NCUA is working with the credit union to make a sustained, conscientious effort to correct these practices. Violations of the letter of understanding and agreement could result in NCUA initiating formal administrative actions under the Federal Credit Union Act, including civil financial penalties, cease and desist orders, removal and prohibition orders, or orders to liquidate, conserve or merge the credit union.
Valley Pride remains open for business as usual and is serving its membership. Members’ funds are federally insured up to $250,000 per account by the National Credit Union Share Insurance Fund, a federal insurance fund backed by the full faith and credit of the U.S. Government.
NCUA enforcement orders are online at http://www.ncua.gov/Legal/Pages/LUA.aspx
and available for inspection at NCUA’s Office of General Counsel between 9 a.m. and 4 p.m. Monday through Friday. Copies are also available by writing NCUA, 1775 Duke St., Alexandria, VA 22314-3428.
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of nearly 100
million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.