Caja D'Oro—the nickname for Internet Archive FCU that means "box of gold—is golden no more.
Just a little more than three years after its founding, Internet Archive Federal Credit Union paid out all shares insured by the NCUA in full to its members of record as part of its voluntary liquidation, the agency reported.
According to the latest NCUA Call Report, Internet Archive, which was based in New Brunswick, N.J., had about $2.25-million in assets and 391 members.
NCUA noted that it had initiated cease-and-desist order proceedings against the credit union on Nov. 24, 2015 in order to prevent it from "committing unsafe and unsound practices and violations of law, rule, and regulation."
That order found a number of serious issues at Internet Archive, including an unwillingness to open accounts within the field of membership, to make loans, and to establish operations in the low-income community the credit union was chartered to serve (New Brunswick and Highland Park, N. J). The credit union was also cited for violations of the Bank Secrecy Act and USA PATRIOT Act; and for its "weakening financial conditions and mounting losses."
In response to these and other problems, the NCUA's cease-and-desist order required the credit union to take certain actions, including the development and implementation of a marketing plan targeting the field of membership the credit union was chartered to serve. Internet Archive was also mandated to provide annual, formal Bank Secrecy Act training for all staff and officials; and to engage a qualified, independent third-party to conduct Bank Secrecy Act compliance program testing, among various other requirements.
However, following a recommendation of the credit union's board of directors, the membership voted to voluntarily liquidate on Dec. 8.
Under NCUA regulations, the credit union was then required to provide the agency with a plan for its voluntary liquidation. NCUA approved such a plan on Jan. 6, 2016, and cease-and-desist proceedings were abated in anticipation of the credit union's share distribution to members.
Internet Archive FCU CEO had previously told Credit Union Journal that chartering a de novo credit union was an extremely complex and difficult task and complained that NCUA also made it difficult for a new credit union to reach its potential.
The CU's official name was an homage to Internet Archive, a San Francisco-based nonprofit digital library headed up by Brewster Kahle, who provided the seed money to start the credit union.
