When you joined the credit union you signed a document with the following stipulation – “1. Membership Eligibility. To be eligible for membership in the Credit Union you must be an individual or entity qualifying within the Credit Union’s field of membership and must purchase and maintain at least one share (the Membership Share Account) as required by the Credit Union’s Bylaws. You authorize us to check your account, credit, and employment history, obtain a credit report from third parties (including credit reporting agencies) to verify your eligibility for the accounts and services we may offer. “
This is a limitation on the insurance provided NCUA. In addition, the worst case scenario is not liquidation but fraud by credit union employees. Then you become an unsecured creditor, and must recover under the liability insurance coverage of the individual credit union. At that point, individual membership may be scrutinized by the insurance company and you do not want to get into discussions of setoff for liability in membership questions.
Again, these are very remote possibilities. However, because we use insured accounts to reduce risk, you should perform your own “good faith” evaluation of membership eligibility within the credit union and not depend on the assessment of credit union personnel.