ALEXANDRIA, Va. (9/21/15)--The New York State Department of Financial Services Friday took possession of Montauk CU, New York, N.Y., and appointed the National Credit Union Administration as conservator.
According to an NCUA release, the New York regulator took its action after finding “unsafe and unsound” conditions at the $178.5 million-asset, 2,893-member credit union.
Under conservatorship, the credit union will be able to continue normal member services while the NCUA works to resolve the issues affecting the credit union’s operations.
Deposits at Montauk CU remain protected by the National Credit Union Share Insurance Fund; individual accounts up to $250,000 and a member’s interest in all joint accounts combined up to $250,000. The Share Insurance Fund also 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.
Montauk CU was chartered in 1922 and serves, according to the release, “eligible members subject to the provisions of its bylaws, which could include any person, upon recommendation of any member in good standing and approval of the board of directors.”
Members who have questions about the conservatorship may review the Montauk CU Frequently Asked Questions available here.
Montauk was the second of two announcements about credit unions being placed into conservatorship Friday. Bethex FCU of Bronx, N.Y. was placed into conservatorship by the NCUA (see related story: N.Y.’s Bethex FCU conserved by NCUA).