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NCUA Issues Letter of Understanding and Agreement

Alexandria, Va., June 14, 2006 -- The National Credit Union Administration (NCUA) has issued a Letter of Understanding and Agreement to the officials of Toledo Metro Federal Credit Union, Toledo, Ohio, in order to restore the credit union to safe and sound operation.

The credit union board signed the Letter of Understanding and Agreement formally recognizing the credit union’s condition and committing to make a sustained, conscientious effort to correct noted adverse conditions, including:

• Poor loan quality;
• Field of membership violations;
• Delinquency; and
• Weak management

Violations of this agreement could result in NCUA initiating formal administration actions under the Federal Credit Union Act, such as, civil money penalties, cease and desist orders, removal and prohibition orders, or orders to liquidate, conserve or merge the credit union.

NCUA enforcement orders are online at http://www.ncua.gov/administrative_orders/LUA/LUA.html,  and may be inspected at NCUA’s Office of General Counsel from 9 a.m. to 4 p.m. Monday through Friday. Copies may be ordered by mail from NCUA, 1775 Duke St., Alexandria, Va. 22314-3428.

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the savings of nearly 85 million account holders in all federal credit unions and the majority of state-chartered credit unions.