In a turnabout, the $481 million Velocity Credit Union of Austin, Texas has decided against switching coverage from the NCUA to a private carrier, American Share Insurance of Ohio.
In a statement, Velocity said even though members had approved the conversion in a recent vote, its board decided to remain with the NCUA based on ASI's year-end announcement that it was forced for the first time to start assessing member CUs following losses in 2009 with possibly more to come in 2010.
"One of our primary reasons for considering a conversion to ASI was because they had not charged a premium in their 35-year history," said Velocity President/CEO Debbie Mitchell. "However, on the final day of Velocity's member vote to convert, ASI announced an assessment of its credit unions for the exact amount of the NCUA assessment: 0.15% of each credit union's deposits." That assessment, she noted, did not include Velocity.
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