NEW ORLEANS – The U.S. Attorney’s office reported that Liberty Bank and Trust Co. has agreed to pay NCUA $1 million to resolve a long-dispute over dividends the bank agreed to pay when the credit union regulator sold it part of a failing credit union. Upon closing Corpus Christi FCU in 1992, NCUA entered into a purchase and assumption agreement in which the agency agreed to invest $2.3 million in Liberty Bank in exchange for 2.3 million shares of Class A Preferred Stock. NCUA claimed that the bank neglected to pay it dividends between 1995 and 2004, as promised. The $1 million payment represents a compromise of the disputed claims.
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