FOR IMMEDIATE RELEASE
Patty Briotta – NAFCU Communications; 703-842-2820; email@example.com
Douglas Kiker – CUNA Communications; 202-508-3626; firstname.lastname@example.org
Washington (Nov. 21, 2016) - The Credit Union National Association (CUNA) and the National Association of Federal Credit Unions (NAFCU) filed an amicus brief supporting the National Credit Union Administration’s (NCUA) motion to dismiss the lawsuit recently filed by the Independent Community Bankers of America (ICBA) which challenges the agency’s authority to issue its latest member business lending rule.
In the brief, NAFCU and CUNA argue that NCUA’s interpretation of the Federal Credit Union Act in the rule is well within the agency’s legal authority. The trade groups defend NCUA’s definition of “member business loan” noting that it has not substantively changed since 2003 and by definition can only include loans made to a member of the lending credit union.
Specifically, CUNA and NAFCU contend, “No amount of linguistic alchemy can convert the term “member business loan” into its opposite, “nonmember business loan.”
“This amici brief formalizes our organizations’ unequivocal support for NCUA’s legal authority to issue its member business lending rule,” said Dan Berger, president/CEO of NAFCU, and Jim Nussle, president/CEO of CUNA. “The CUNA/League system and NAFCU will continue to work together to assert the agency’s jurisdiction to interpret the Federal Credit Union Act and help advance the interests of credit unions and their ability to provide critical capital to small businesses.”
Last week, the Independent Community Bankers of America filed a response to NCUA’s brief seeking dismissal of the lawsuit.
With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves America's credit unions, which are owned by more than 100 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information about CUNA, visit www.cuna.org or follow @CUNA on Twitter. For more information about credit unions, visit www.aSmarterChoice.org and follow @asmarterchoice on Twitter.
The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.