March 19, 2010 Alexandria, Va. – The National Credit Union Administration (NCUA) today placed into conservatorship Tracy Federal Credit Union of Tracy, California. The action was taken to preserve member assets and ensure uninterrupted credit union service. Member funds are federally insured by the National Credit Union Share Insur ance Fund up to at least $250,000.
Tracy Federal Credit Union’s 5,900 members can continue to conduct normal financial transactions – deposit and access funds, make loan payments and use share drafts. Tracy Federal Credit Union is a full service credit union, with assets of $24 million, that provides financial services to residents of the city of Tracy.
The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses.
Member deposits are safe. Their accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.
The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the National Credit Union Share Insurance Fund.