The National Credit Union Administration issued its first year-2000 enforcement order last week, to Onized Oakland (Calif.) Federal Credit Union.
The $4 million-asset credit union agreed to send year-2000 inquiries to its vendors by May 31; develop year-2000 action, contingency, and member education plans by June 30; and develop a year-2000 testing plan and budget by July 31.
Onized also agreed to estimate the impact of planned year-2000 expenditures on its capital level, earnings, and liquidity position.
Also last week, the agency announced that it had issued an enforcement order last year to tiny Savastate Teachers Federal Credit Union, a $2 million-asset, 543-member institution in Savannah, Ga.
In its order, the NCUA said it had identified "ineffective lending and collection practices" by Savastate, as well as inadequate funding for loan losses.
"We are concerned that your credit union's future may be in serious jeopardy," the NCUA wrote.
To rectify its situation, Savastate agreed to reduce delinquencies and increase collections, return to profitability, and increase loan-loss reserves, among other changes.