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Most Americans don’t realize that when a credit union with federal insurance is liquidated due to insolvency, NCUA's Asset Management and Assistance Center (AMAC) is responsible for paying the share accounts to the members says Edward Palonek, founder of Foundmoney.com, a company that helps reunite people with their lost or forgotten money and was the first company on the Internet to do so.
According to Palonek, it is very likely that, some accounts remain unclaimed, since there will be checks that were never cashed or these credit union's address information was incomplete.
The good news is that on July 21, 2010, President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act that now makes deposits in credit unions insured up to $250,000 maximum permanent, which brings it to the level as regular banks. The original amount was only $100,000.
Federally insured credit union member accounts are now insured to at least $250,000 by the National Credit Union Share Insurance Fund, a federal insurance fund backed by the full faith and credit of the U.S. Government.
The NCUSIF insures member savings in federally insured credit unions, which account for approximately 98 percent of all credit unions. All federal credit unions and the vast majority of state-chartered credit unions are covered by NCUSIF insurance protection. The federally insured credit unions are required to indicate their insured status in their advertising and to display the official NCUSIF insurance sign in the offices.
What is important to realize however, is that if a credit union is liquidated, this insurance expires if a members account remains unclaimed for 18 months. After 18 months the share account balances are paid based on liquidation and other recoveries.
There are times that the liquidation of a credit union may result in surplus funds and if this is the case a distribution to the shareholders is required. This may occur several years after the credit union is liquidated and it is sometimes difficult to locate these members to give this excess funds to.
The remaining funds however, are generally held by NCUA and are available as long as the records of the credit union remain available or until the charter or insurance certificate is canceled.
According to Edward Plaonek, “In some cases funds may be transferred to a state where it is officially classified as unclaimed property, but the rightful owner can still make a claim for these unclaimed assets."
Many folks could use some extra cash right now to start to pay down their credit cards or overdraft limits on their bank accounts. A quick and easy way is to simply do an online web search at www.foundmoney.com. There you can see if you, a loved one, friend or neighbor has some unclaimed money just sitting there waiting for its rightful owner to make a claim for this cash.
“Wouldn’t it be wonderful if you found a few thousands or just a just a few extra dollars right”, says Palonek
Search for your money today, it is easy just visit foundmoney.com