WEST HARTFORD, Conn. -- It would be unsafe and unsound for West Hartford Credit Union to continue its operations given its current financial condition, Connecticut Banking Commissioner Howard Pitkin said Friday.

Pitkin said he petitioned the Superior Court for the Judicial District of Hartford County to name the National Credit Union Administration (NCUA) as receiver.

The Connecticut Department of Banking assumed control of West Hartford Credit Union Inc. and appointed NCUA receiver after determining the credit union had inadequate capital and was experiencing significant loan losses and elevated risk due to poor credit administration practices and recordkeeping.

"We are saddened by this development related to the West Hartford Credit Union," Pitkin said. "But my primary responsibility is the protection of Connecticut consumers. Therefore, we were forced to close the doors of this institution."

Attorney General Richard Blumenthal said all deposits should be protected and insured by the National Credit Union Share Insurance Fund.

"For the first time in more than a decade, we must take this exceptional, but necessary, step to appoint a receiver over a state-chartered credit union,” he said. “The West Hartford Credit Union's finances have so dangerously deteriorated that we must act to protect account holders and creditors. This receiver will liquidate and investigate the West Hartford Credit Union, ensuring accountability and stability for depositors.

"This credit union's demise threatens consumers in the worst possible economic climate,” he said. “My office appreciates the excellent work done by banking department officials in ensuring that account holders and consumers are fully protected."

At the time of liquidation, he said, the credit union had $2.9 million in assets and served 1,206 members. The credit union began operations in 1950 and served Litchfield, Hartford, Middlesex, and New Haven counties in Connecticut.

Depositors should also be aware that their accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts, officials said. NCUA will issue checks to members holding verified share accounts in the credit union within one week, he said.