Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
NCUA sues to recover defunct CUs land development losses
LAS VEGAS (3/29/11)--The National Credit Union Administration (NCUA), as liquidating agent of the former Ensign FCU, Henderson, Nev.,has sued developers and individuals who entered into real estate construction loans with the credit union in 2007, two years before the credit union was shuttered due to declining financial condition. NCUA filed suit Thursday in a U.S. District Court for the District of Nevada, Las Vegas, to recover losses stemming from the developers and guarantors' failure to pay on the $1.9 million borrowed from Ensign. The suit centers on a condominium development, Habitat Center II LLC, which entered into the construction loan agreement with the credit union on May 30, 2007, according to court documents. Defendants in the case are loan guarantors Perry Chamani, also known as Pirooz Perry Chamani: Fay Chamani; and Environmental Landscape Inc. NCUA also included unknown corporations identified as Doe and Roe Corps, which may be added to the lawsuit once identified. Habitat Center failed to make payments on the promissory note and construction loan agreement on property in Clark County, Nev., and NCUA foreclosed the property on Nov. 1, 2010, said NCUA's complaint. The proceeds from the foreclosure sale of the property did not pay the full amount of the defaulted debt, and NCUA is seeking action based on breach of guaranty and a deficiency judgment to recoup losses, the complaint said. Ensign FCU had 7,900 members and $98 million when it was placed into involuntary liquidation on Nov. 13, 2009, said NCUA. EDS CU of Plano, Texas, purchased and assumed Ensign's member share accounts (News Now Sept. 25, 2009).


RSS print
News Now LiveWire
September is National Preparedness Month. Read how your CU can get ready in #NewsNow #NPM @AgilityRecovery @Readygov
18 hours ago
Bay Area #creditunions featured in @SFBusinessTimes article http://t.co/SE7W81Ulia
20 hours ago
#NewsNow: 8 CU advisory board, new senior leaders named at @CFPB. http://t.co/EPKgHEDRRN
22 hours ago
#NewsNow: @FTC warns of government impostor scams. http://t.co/MMWBOcrqwJ
22 hours ago
Registration open for @CUNAMutualGroup's Discovery Conference #NewNow http://t.co/CATF0j9ct1
23 hours ago