Media Release

Valley Credit Union Placed In Conservatorship

Valley Credit Union is Open and Operating, Member Accounts are Safe and Federally Insured 

September 3, 2008, Alexandria, Va. -- The National Credit Union Administration (NCUA) yesterday assumed control of the operations of Valley Credit Union, a state-chartered, federally insured credit union headquartered in San Jose, California.

The California Division of Financial Institutions appointed NCUA as conservator after placing Valley Credit Union into state conservatorship. NCUA will operate the credit union with a goal of continuing credit union service to the members and to ensure safe and sound credit union operations.

Service continues uninterrupted at Valley Credit Union and members are free to make deposits, access funds, make loan payments and use share drafts. While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.

Member accounts are insured to at least $100,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government. Excess insurance protection is currently provided by private insurer American Share Insurance of Dublin, Ohio.  Members with questions about their insurance coverage can contact NCUA’s Region V Division of Insurance at 602-302-6000 Monday through Friday during business hours.  

Valley Credit Union was originally chartered in 1953 and today serves Alameda, Contra Costa, and Santa Clara Counties. The credit union has $257 million in assets and nearly 26,900 members.

The National Credit Union Administration (NCUA) is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 87 million account holders in all federal credit unions and the vast majority of state-chartered credit unions.  NCUA is funded by credit unions, not tax dollars.

-NCUA-