ALEXANDRIA, Va. (5/27/14)--The Virginia State Corporation Commission closed Life Line CU, a $7.4 million-asset credit union in Richmond, Va., and appointed the National Credit Union Administration Board as receiver to act as liquidating agent.
North Chesterfield, Va.-based Virginia CU, with $2.5 billion in assets, assumed all member shares.
The commission decided to close Life Line and discontinue its operations after determining the credit union was insolvent and had no reasonable prospect for restoring viable operations.
At the time of liquidation and subsequent assumption by Virginia CU, Life Line was a federally insured, state-chartered credit union that served 2,076 members and had assets of $7.9 million, according to its most recent call report.
Chartered in 1969, Life Line served employees of the Bon-Secours Richmond Health System and Central Virginia Health Network.
Life Line CU members will now become members of Virginia CU and should experience no interruption in deposit services. Members' accounts remain insured by the National Credit Union Share Insurance Fund up to $250,000.
NCUA's Asset Management and Assistance Center will take charge of Life Line's assets and loans and will correspond with individuals who have loans with the credit union.
Life Line CU is the fifth federally insured credit union liquidation in 2014.