Wednesday, January 20, 2016

Internet Archive FCU Voluntarily Liquidating, Insured Shares Paid in Full

The National Credit Union Administration (NCUA) announced that Internet Archive FCU (New Brunswick, NJ) paid all insured shares in full on January 20.

The press release noted that NCUA initiated cease-and-desist order proceedings on Nov. 24, 2015 in order to prevent the credit union from committing unsafe and unsound practices and violations of law, rule, and regulation.

NCUA cited the credit union for ongoing deficiencies, including an unwillingness to open accounts within the field of membership, make loans, and establish operations in the low-income community where the credit union was chartered to serve; violations of the Bank Secrecy Act and USA PATRIOT Act; and weakening financial conditions and mounting losses.

NCUA also outlined numerous remedial actions to be taken by the credit union.

The credit union's board recommended that the credit union liquidate and the members voted affirmatively to liquidate the credit union on December 8, 2015. NCUA approved the voluntary liquidation plan on January 6, 2016.

Read the press release.

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