CUNA’s board of directors passed a resolution Tuesday stating CUNA’s commitment to protecting credit union interests by rejecting the lawsuit brought last week by the Independent Community Bankers of America (ICBA) against the NCUA and its member business lending (MBL) rule. The rule is effective Jan. 1, 2017.
“CUNA’s board and I will take whatever actions necessary to protect credit unions’ interests,” said Jim Nussle, president/CEO of CUNA. “We believe that the MBL rule is consistent with the law, which provides significant constraints on credit union member business lending. The NCUA acted appropriately and followed all procedures when issuing the MBL rule. The rule falls well within its statutory authority to interpret the application of the MBL cap.”
Specifically, the CUNA board passed a resolution to support the NCUA’s MBL final rule, as well as the agency’s proposed field-of-membership rule. The board also authorized CUNA to take whatever supportive actions are necessary to challenge the ICBA’s lawsuit.
CUNA worked closely with the agency to ensure its waiverof the personal guarantee requirement, which became effective in May.