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NCUA Kappa Alpha Psi seek hearing delay
WASHINGTON (8/18/10)—Kappa Alpha Psi FCU will now have until Aug. 23 to respond to the National Credit Union Administration’s most recent court statement after the credit union and the National Credit Union Administration (NCUA) agreed to extend the deadline on Tuesday. The NCUA will be given until Aug. 30 to respond to any claims that the credit union may make at that time, and the two sides also agreed that any additional hearings related to the case will take place between Sept. 15 and 30. The two sides were set to take part in a full hearing to be held later today in the U.S. District Court for the District of Columbia. However, the credit union failed to respond to an NCUA brief by the previously scheduled Aug. 16 deadline. The credit union filed a legal challenge to the NCUA’s liquidation order earlier this month, alleging in the challenge that the NCUA’s forced liquidation of the credit union was unjust. Specifically, the credit union alleged that the “significant drop” in its net worth ratio was created by assessments charged by the NCUA. The NCUA countered, saying that its liquidation order was well founded and was directly related to the credit union’s inability to generate profits, build its net worth, and adequately grant, service, and collect loans. The NCUA on Friday formally liquidated the troubled credit union by distributing all shares held in the credit union to its former members. The NCUA on Tuesday said that it “has a statutory obligation to pay members their shares and give them access to their funds as soon as possible.” Any member funds that were still held in the credit union as of Friday were mailed to the former members on that day, the NCUA said. A total of just over $700,000 in member funds were paid to the credit union’s 1,472 members. However, the NCUA said that it could not locate the holders of 150 accounts which typically held the minimum $25 account balance, and nothing more. The NCUA said that it is continuing the search for the holders of these accounts.


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