UNITED STATES OF AMERICA
BEFORE THE NATIONAL CREDIT UNION ADMINISTRATION
In the Matter of [redacted]
Decision and Order on Appeal
This matter comes before the National Credit Union Administration Board (Board) pursuant to 12 CFR 745.202 as an administrative appeal of the determination by the Agent for the Liquidating Agent of Germantown Federal Credit Union denying [redacted] insurance claim in the amount of [redacted].
[redacted], opened a joint account in Germantown Federal Credit Union in March,1993. [redacted] was the joint owner on the account. In May of 1994, [redacted] died. Approximately two and half years later, in October 1996, NCUA placed Germantown Federal Credit Union into involuntary liquidation due to insolvency. As liquidating agent for Germantown Federal Credit Union, NCUA entered into a purchase and assumption agreement with Sentry Federal Credit Union whereby member accounts were transferred to that credit union. Sentry Federal Credit Union has maintained the Germantown facility as a branch office.
[redacted] first attempted to access the account in late 1996 or early 1997, after the liquidation, and was informed that there was a discrepancy between the account balance on the credit union’s records and that claimed by [redacted]. Sentry Federal Credit Union directed her to NCUA’s Asset Management and Assistance Center (AMAC) because the deposit was allegedly made in 1993, prior to the purchase and assumption.
[redacted] supplied an account passbook and cash received voucher as evidence of the account. Both the passbook and voucher have handwritten entries. The voucher form has a line for credit union staff to initial; it is left blank. The only evidence of the opening of the account located by Sentry Federal Credit Union staff is a computer generated record showing a [redacted] dollar opening balance, dated March 9, 1993. Information on trial balances obtained from Sentry Federal Credit Union show a [redacted] balance at year-end 1993 and year-end 1994. Account statements sent to [redacted] covering the period from March 1, 1995 through March 31, 1997 reflect only a [redacted] deposit. Based on available evidence, AMAC denied [redacted] claim and she filed this appeal with the Board.
After she submitted her appeal, and at NCUA’s request,[redacted] submitted an affidavit wherein she attested as follows: 1) [redacted], opened joint [redacted] (with [redacted] as joint owner) at Germantown Federal Credit Union on March 8, 1993, with a cash deposit of [redacted]; 2) [redacted] died in May, 1994; and 3) no other deposits were made to nor were any withdrawals made from the account.
Other than the passbook, voucher and her affidavit, [redacted] presented no other evidence to substantiate that the passbook balance was in fact the balance at the time of her attempt to access the account. The trialbalances for 1993 and 1994 and the 1995 - 1997 account statements all show an account balance of only [redacted]. Although a [redacted] deposit may have been made in 1993, [redacted] may not have been aware that her mother made withdrawals prior to her death. However, the account statements sent to [redacted], beginning with the March 1995 statement issued over 18 months prior to the liquidation of Germantown Federal Credit Union, put [redacted] on constructive, if not actual notice, that the account balance was only [redacted]. Taken together, the evidence does not substantOrderiate an existing balance of [redacted].
For the reasons set forth above, it is ORDERED as follows:
The Board upholds the Liquidating Agent’s decision to deny the [redacted] claim in the amount of [redacted] and denies [redacted] appeal.
The Board’s decision constitutes a final agency determination. Pursuant to 12 CFR 745.203(c), this final determination is reviewable in accordance with the provisions of Chapter 7, Title 5, United States Code, by the United States Court of Appeals for the District of Columbia or the court of appeals for the Federal judicial circuit where the credit union’s principal place of business was located. Such action must be filed not later than 60 days after the date of this final determination.
So ORDERED this 30th day of July, 1998 by the National Credit Union Administration Board.
Secretary of the Board