NCUA Cleared To Foreclose On Las Vegas Office Building

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LAS VEGAS – A federal bankruptcy court last month agreed to lift the automatic stay in Chapter 11 bankruptcy and allow NCUA to foreclose on a speculative downtown office building it inherited after the 2009 liquidation of Ensign FCU, one of the biggest credit union failures of the past few years.

The court ruling will allow NCUA, which holds a $1.5 million debt on the property, to sell the building.

NCUA inherited the loan after it liquidated the one-time $135 million Henderson, Nev., credit union and assigned its remnants to InTouch CU (formerly EDS CU) of Dallas. Ensign was one of the four major Las Vegas-area credit union failures, along with Clearstar Financial CU, Community One FCU and Cumorah CU, which are estimated to cost as much as $60 million to resolve.

 

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