Recently, the Wisconsin Bankers Association and 50 additional state banking associations filed friend-of-the-court briefs in support of ABA’s lawsuit challenging the National Credit Union Administration’s expansive field of membership rule. ICBA also filed a separate, similar brief the same day. The state association brief argues that the final rule’s definition of “well-defined neighborhood, community or rural district” to include large regions encompassing multiple metro areas stretches well beyond the authority of the NCUA board. It also points out that the final rule will have a substantial adverse effect on community banks, which compete with tax-subsidized credit unions, and that the way the final rule allows credit unions to serve parts of Core-Based Statistical Areas without serving the urban core that defines the area goes against congressional intent.
The ABA had filed for summary judgement in the case and 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.
A copy of the state banking associations’ amicus brief can be found here.