ALEXANDRIA, Va. – NCUA said yesterday it has delayed the planned sale of the remnants of Norlarco CU to one of three Colorado credit unions, while it continues to wade through dozens of lawsuits brought by borrowers of the failed $320-million credit union.
The NCUA Board was scheduled to vote on one of three purchase and assumption offers from Ent FCU, Bellco FCU and Public Service of Colorado CO tomorrow, but decided to put off the deal until at least early next year. Under a purchase and assumption, one of the three bidders will purchase the member accounts and branches of Norlarco and NCUA will assume as much as $240 million in real estate loans, made of them failed, that the credit union made in two south Florida developments, Cape Coral and Lehigh Acres.
NCUA has already sold off two other failed credit unions involved in those ill-fated real estate developments, Huron River Area CU and New Horizons Community FCU.
The three deals are expected to leave NCUA with as much as $400 million of Florida loans, which it will try to sell. A sale of 100 loans worth $26 million made by Norlarco is scheduled to take place on Thursday.
