High Desert Federal Credit Union, taken over yesterday.

FOR IMMEDIATE RELEASE

High Desert Federal Credit Union Placed Into Conservatorship
High Desert Federal Credit Union is Open and Operating, Member Accounts are Safe and Federally Insured

October 16, 2008, Alexandria, Va. — The National Credit Union Administration (NCUA) has assumed control of the operations of High Desert Federal Credit Union headquartered in Apple Valley, California. The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the National Credit Union Share Insurance Fund.

Service continues uninterrupted at High Desert Federal 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 a 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 $250,000 while IRA and KEOGH retirement accounts are separately 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. Members with questions about their insurance coverage can contact NCUA’s Consumer Assistance Center at 800-755-1030 Monday through Friday between 8:00 a.m. and 6:00 p.m. (EDT).

High Desert Federal Credit Union was originally chartered in 1951 and today serves those who live, work, or worship in San Bernardino County, California. The credit union has $149 million in assets and serves over 13,000 members.

The National Credit Union Administration 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, insuring the deposits of 89 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.

The following links to a document for members being posted on the High Desert Federal Credit Union website concerning the conservatorship, http://www.hdfcu.org.

-NCUA-

^*I ripped off this term from Atrios.