WASHINGTON -- The Office of Thrift Supervision placed Polifly Savings and Loan Association, New Milford, N.J., in receivership on Friday and chartered a new federal mutual institution to take its place.

The new institution, Polifly Federal Savings and Loan Association, will operate the thrift in conservatorship under the management of the Resolution Trust Corp.

The institution reported $463 million of assets on June 30 and a tangible capital-to-assets ratio of 1.11%. It had $104.7 million of criticized assets as of Sept. 30, lost money in all quarters but one since September 1989, and has been operating under regulatory restrictions since 1990.

The OTS said Polifly was in unsafe and unsound condition and could not replenish its capital without federal assistance.

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