January 25 – A federal district court dismissed the Independent Community Bankers of America’s lawsuit against the National Credit Union Administration and its member business lending rule, stating that the grievances were not timely and that ICBA lacked standing.
In the ruling, the court said even if the ICBA had established standing and timeliness, it still would have found that the NCUA rules satisfied the requirements established by the Administrative Procedures Act and existing case law.
The lawsuit was filed in the U.S. District Court for the Eastern District of Virginia in September. NCUA’s final MBL rule eliminated credit unions’ personal guarantee requirement and the waiver process.
The Independent Community Bankers of America expressed deep disappointment over the decision. “If the decision stands, tax-exempt credit unions will be permitted to exceed congressional limitations on commercial lending activity under relaxed regulatory oversight, thereby posing a tangible threat to community banks, consumers and the financial system at large, said ICBA president and CEO Camden R. Fine.
“Along with our counsel, we are evaluating the decision and our options,” he said. “Regardless of today’s decision, ICBA will continue to pursue efforts to level the tax and regulatory playing fields between community banks and credit unions through all appropriate avenues.”