During the year 6 credit unions were placed into involuntary liquidation. In addition, AMAC was responsible for portions of 6 new purchases and assumptions and 2 voluntary liquidations. At the end of the year 74 credit unions were in process of liquidation. Real estate assets are acquired as real estate owned or as loans. Real estate loans, performing and non-performing, are sold in bulk, repaid or settled with the borrower, or foreclosed and converted to real estate owned.
Dispositions are through sales of individual assets and bulk sales.
To some degree staffing, office facilities, and other costs fluctuate according to workload. AMAC can quickly expand and contract based on liquidations and other workload demands. The overall objective is that as recoveries decline, the costs associated with recoveries must also be reduced. In 1995, a cost to recovery ratio of 11.74 percent was achieved.