ABA filed a combined brief yesterday opposing NCUA’s cross-motion for summary judgment and reinforcing the association’s own motion for summary judgment in the lawsuit challenging NCUA’s final rule expanding credit union fields of membership.
NCUA’s final rule expanded community-based credit union fields of membership far beyond the limitations imposed by Congress. In its lawsuit, ABA specifically challenged the inclusion of combined statistical areas — which encompass multiple metropolitan statistical areas — as “local communities”; the ability of credit unions to serve core-based statistical areas without serving the urban core that defines the area; the ability to add “adjacent areas” to existing community fields of membership; and the dramatic expansion of what constitutes a rural district.
ABA is seeking a declaration that the rule exceeded the agency’s statutory authority and is arbitrary and capricious, as well as an injunction prohibiting any community charter expansions pursuant to the challenged portions of the rule. NCUA’s reply is due by August 9 and a decision on oral argument will be made after Labor Day. For more information, contact ABA’s Sabrina Bergen.Email This Post