CHARITON, Iowa — The Iowa Credit Union Division on Friday was granted authority by a District Court to place SCICAP Credit Union, based here, into receivership.
The receivership then was tendered to NCUA, and $534 million Community 1st Credit Union of Ottumwa, Iowa, immediately assumed most of SCICAP Credit Union's members, assets and loans, the federal regulator said.
Community 1st serves 53,681 members, according to its most recent Call Report.
The Iowa Credit Union Division said in a statement it made the decision to take over management of SCICAP Credit Union after determining the credit union was, "insolvent with no prospect for restoring viable operations on its own."
At the time of liquidation and subsequent purchase by Community 1st Credit Union, SCICAP Credit Union had assets of approximately $2 million and served 858 members, according to the credit union's most recent Call Report.
Chartered in 1968, SCICAP Credit Union served employees of SCICAP, Inc.; Decatur County; Decatur County Hospital; City of Leon; Westview Corporation; Wayne County; Mosaic, a non-profit human services organization; Southern Iowa Resources for Families, Inc.; Community Health Care Centers of Southern Iowa and members of the Central Decatur Employee Association.
SCICAP is the sixth federally insured credit union liquidation in 2015, NCUA said. News of the liquidation came on the heels of the federal regulator chartering
