Saturday, August 29, 2015

SCICAP CU Closed

The Iowa Credit Union Division was granted authority by the District Court to place SCICAP Credit Union of Chariton, Iowa, into receivership and then tendered the receivership to the National Credit Union Administration.

Community 1st Credit Union of Ottumwa, Iowa, immediately assumed most of SCICAP Credit Union’s members, assets and loans.

The Iowa Credit Union Division made the decision to take over management of SCICAP Credit Union after determining the credit union was insolvent with no prospect for restoring viable operations on its own.

The credit union's most recent Call Report indicated that the credit union was well capitalized and profitable. This would suggest that fraud may have been involved with this failure.

At the time of liquidation, SCICAP Credit Union was a federally insured, state-chartered credit union with assets of approximately $2 million that served 858 members, according to the credit union’s most recent Call Report.

SCICAP is the sixth federally insured credit union liquidation in 2015.

Read press release.
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