According to the Order,
Eagle Credit Union "shall retain management and maintain a Board of Directors (Board) acceptable to the Commissioner. Such management shall include, at a minimum, a person (or persons) capable of adequately performing the functions of a chief executive officer, a chief financial officer, and a senior lending officer." Management should have the skills to restore the credit union to a sound condition, operate the credit union in a safe and sound manner, comply with the provisions of this Order, and comply with applicable laws and regulations.
In addition, the $19.9 million credit union is req1uired to report weekly to the Commissioner and the National Credit Union Administration (NCUA) Regional Director of the status of all ongoing merger discussions and due diligence reviews until the merger is complete.
The credit union will continue to assure adequate oversight and adherence to the general ledger account reconciliation policy and procedures and the cash handling procedures.
The credit union is expected to report monthly to the Board all progress made regarding the corrective action taken by management to resolve the accounting and internal controls deficiencies, until those deficiencies have been corrected and until a merger is completed.
The credit union shall develop, adopt, and submit to the Commissioner a revised strategic plan and budget to include the following:
- Specific actions to be taken, the assumptions made, and the timeframes necessary to maintain stable financial condition during the merger process;
- Contingency plans in the event the financial condition deteriorates further, including specific expense reduction and trigger points when these actions will be taken; and
- Contingency plans in the event operational and/or key accounting staff is no longer employed at the credit union.
The credit union shall not enter into a new or amended contract or renewal that will cost Respondent more than five thousand dollars ($5,000) or with a term over one year without the prior written consent of the Commissioner.
Read the Order.