ALEXANDRIA, Va. — NCUA has released Rapid City Telco FCU from a cease and desist order originally issued Feb. 25, 2010.
The original supervisory action was aimed at halting construction on the CU's new branch located near the presidential monuments Rushmore Crossing shopping Center, or any other additional fixed assets without NCUA approval, as the CU had exceeded the regulator&'s fixed assets rule.
The original order directed the credit union to stop paying for all expenditures related to the construction process, as well as to submit all bills for approval. The CU was also directed to submit a plan to bring it into compliance with NCUA's fixed assets rule.
At the time, the construction project increased Rapid City Telco FCU's investments in fixed assets to more than 8% of total assets, which exceeded NCUA's limits of 5% of shares and retained earnings. Partly as a result of that project, the CU lost more than $240,000 in 2009.
Rapid City Telco currently has $43 million in assets and serves about 5,500 members. It earned more than $195,000 in 2013.
An NCUA representative told Credit Union Journal that it was only a coincidence that the agency lifted the cease and desist order on the four-year anniversary of the day it was issued.
