The NCUA Appeals Right to Define “local community” in Recent Court Case

According to CU Times magazine, the National Credit Union Administration (NCUA) Board “reasonably exercised” its power to define “local community,” and a federal judge should not have ruled otherwise, the agency said in documents filed in a federal appeals court last Thursday.

The documents were filed as part of the agency’s appeal of a federal judge’s ruling that threw out portions of the NCUA’s revised Field of Membership rule. The American Bankers Association challenged the rule. The judge threw out a provision of the field of membership rule that increases to one million people the population limit for rural districts, as well as a provision of the rule that automatically qualified a “Combined Statistical Area” or a contiguous portion of it with fewer than 2.5 million people to be a local community.

“Congress has further given the National Credit Union Administration, the agency that oversees federal credit unions, authority to promulgate regulations to define what constitutes a ‘well-defined local community, neighborhood, or rural district.’” the NCUA said in its brief.

Click here to read the full article from CU Times Magazine.

in Compliance & Regulatory News