N.D. Senators, credit unions call for proper asset recovery

August 30, 2022

Sens. John Hoeven, R-N.D., and Kevin Cramer, R-N.D. joined the Dakota Credit Union Association and credit unions calling on NCUA to ensure credit unions in the state properly recover assets from the failed U.S. Central Federal Credit Union corporate credit union. NCUA implemented the Corporate Stabilization Program in 2009 in response to investment losses at U.S. Central, as well as placing it into conservatorship.

“Here in North Dakota, we have lost 16 credit unions through mergers since 2009. Clearly, the lost revenue, shared insurance premium assessments, and ensuing regulations contributed to the consolidations. The reimbursements of the capital shares would certainly benefit every one of these credit unions and their member owners,” said Jeff Olson, president/CEO of the Dakota Credit Union Association. “The NCUA needs to do the right thing and disburse these recovered assets to the rightful owners.”

Hoeven and Cramer support the efforts of the Dakota Association to recover assets.

“We encourage you to stay in close communication with the Dakota Credit Union Association as they work through the claims process to ensure all proper claims are satisfied to the greatest extent possible, and that these recovered assets are returned to their rightful owners of these recovered assets,” they wrote.

NCUA announced a $395 million distribution Monday that includes $313 million to membership and paid in capital shareholders of the former U.S. Central, as well as Members United, and Constitution corporate credit unions.