The National Credit Union Administration is expected to close the books on Capital Corporate Federal Credit Union this week.

The agency board met Friday to design its strategy for selling off remnants of the Lanham, Md., institution.

Sources said the agency will look to sell at a premium Cap Corp's item- processing business and $513 million in deposits to either Mid-Atlantic Corporate Federal Credit Union, Harrisburg, Pa., or Southeast Corporate Federal Credit Union, Tallahassee, Fla.

The insurance fund is not expected to suffer a loss.

Cap Corp was seized by federal regulators on Jan. 31 after it ran into a liquidity crunch brought on by huge paper losses on collateralized mortgage obligations. The NCUA has sold off the corporate's entire portfolio at a loss of $61 million.

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