The NCUA liquidated KAPFCU despite an ongoing court battle inorder to protect the assets of the CU's members, the agencysaid.
|NCUA began sending checks to members on Aug. 13, even though theagency and KAPFCU were both scheduled to be in court this week tocontinue litigating whether to order the agency to stop theliquidation.
|"Whenever we liquidate a credit union we are mindful of theresponsibility to return funds to members in an expeditiousmanner," said John McKechnie, NCUA's director of Public andCongressional Affairs. "In this case, as with other liquidations,we were prepared to do that either by transferring the shares toanother credit union or paying them directly to the members. Kappawas unwilling to support a share transfer to another institution,and accordingly the NCUA provided the funds directly to themembers," he added.
|Both parties were scheduled to appear before U.S. District JudgeEmmet Sullivan at 10:00 am on Aug. 18, but the parties have jointlyasked the hearing be postponed until September.
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