Member Accounts Protected by Share Insurance Fund; Services Continue
ALEXANDRIA, Va. (March 31, 2017) – The State of Michigan Department of Insurance and Financial Services today liquidated Valley State Credit Union of Saginaw, Michigan, and named the National Credit Union Administration as liquidating agent.
ELGA Credit Union of Burton, Michigan, immediately assumed Valley State Credit Union’s members, assets, shares, and loans. ELGA Credit Union is a federally insured, state-chartered credit union with assets of $498,512,717 and 64,058 members, according to its most recent Call Report.
The new members of ELGA Credit Union should experience no interruption in services, and their accounts remain federally 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.
ELGA Credit Union has posted information for its members on its website (opens new window), and members with questions can contact the credit union at 810-715-3542 Mondays, Tuesdays, Thursdays, and Fridays from 8 a.m. to 6 p.m. Eastern; Wednesdays from 9:30 a.m. to 6 p.m.; and Saturdays from 10 a.m. to 1 p.m. The existing Valley State Credit Union office at 2686 McLeod Drive North, Saginaw, will remain open.
The Department of Insurance and Financial Services made the decision to liquidate Valley State Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for recovery. The Department placed Valley State Credit Union into conservatorship on Aug. 17, 2016 and named NCUA as conservator on Nov. 9, 2016.
Chartered in 1955, Valley State Credit Union served employees of the State of Michigan who lived or worked in the Michigan counties of Arenac, Bay, Genesee, Huron, Midland, Saginaw, Sanilac, or Tuscola, employees, students, and alumni of Saginaw Valley State College, and other specific groups. At the time of liquidation and subsequent purchase by ELGA Credit Union, Valley State Credit Union served 2,715 members and had assets of $19,817,961, according to the credit union’s most recent Call Report.
Valley State Credit Union is the second federally insured credit union liquidation in 2017.