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The NCUA on Friday announced the conservatorship of Briarwood, N.Y.-based Melrose Credit Union.

Melrose was taken into possession by the New York State Department of Financial Services, which appointed the NCUA as conservator. The New York agency said it acted due to unsafe and unsound practices at Melrose, which is a taxi medallion lender.

"NCUA is monitoring the state of the taxi medallion market and its impact on credit unions, and recently provided an update to NAFCU's Share Insurance Committee," said NAFCU Chief Economist and Director of Research Curt Long. "NAFCU will continue to track the status of remaining taxi medallion lenders for any potential impact on the insurance fund."

Melrose serves 23,462 members and has assets of $1.78 billion. The National Credit Union Share Insurance Fund insures all individual accounts up to $250,000 and a member's interest in joint accounts combined up to $250,000.

More information is available in the NCUA's FAQ about the conservatorship (link).