The Illinois Director of the Division of Financial Institutions suspended Madco CU's operations for 60 days over danger of insolvency.
In a suspension order signed May 23, the state regulator said it failed to determine the true financial condition of the Edwardsville, Ill.-based credit union after conducting an examination.
Among other things, the order disclosed that the institution had been delinquent in paying Illinois taxes and federal payroll taxes, and it had lacked the required number of directors under state law and paid a 2017 dividend without a legal board quorum. The credit union had also delayed its annual meeting, which was supposed to be held within the first three months of the year.
The state regulator appointed Bethalto, Ill.-based 1st MidAmerica CU manager-trustee, the report added.