ALEXANDRIA, Va. – NCUA said it is transferring the operations of Constitution State Corporate Credit Union to Members United Bridge Corporate FCU in Warrenville, Illinois.
The agency will liquidate South Wallingford, Conn.-based Constitution Corporate on Nov. 30. Under the plan, Members United will assume Constitution’s members, shares, and business processes to ensure ongoing service to the credit unions and their consumer members.
In a statement to Credit Union Journal, NCUA Spokesperson John McKechnie said, “In consideration of the best interests of the members of both corporate credit unions and the NCUSIF, and a strong commitment to maintaining uninterrupted services, NCUA determined that best course of action is to combine operations.”
NCUA said all Constitution term certificates will transfer to Members United at their same rate and maturity, and that new certificates will be issued under Members United’s current policies.
NCUA further said that over the next 90 days, the former members of Constitution will transition to the systems and processes provided by Members United, with no negative impact on service to the members of either corporate credit union. Once that transition is complete, the Connecticut facility will be closed, but Members United will maintain a presence in Connecticut with three locally-based, long-tenured staff members remaining in place.
Constitution’s distressed mortgage backed securities will remain in an asset management estate, and will not be assumed by Members United. NCUA said it will securitize Constitution’s distressed assets, by the end of February 2011.
