Court sets FOM lawsuit appeal dates, NCUA brief due Dec. 5

October 30, 2018

The D.C. Circuit Court of Appeals has set a briefing schedule for the appeal of the field-of-membership lawsuit brought against NCUA by the American Bankers Association (ABA). CUNA fully supports NCUA in its appeal, and plans to submit an amicus brief in the appellate litigation.

NCUA is required to submit a brief by Dec. 5, with amicus briefs in support of NCUA due Dec. 12. ABA’s opening brief is due Jan. 4, NCUA’s reply is due Feb. 4 and ABA’s cross-appeal reply is due Feb. 19.

NCUA finalized its FOM rule in October 2016, a CUNA-backed change that modernizes FOM rules. The ABA sued the agency the following December. CUNA filed an amicus brief in June 2017 supporting NCUA.

The U.S. District Court for the District of Columbia ruled in March of this year, upholding two challenged portions of the rule while striking down two provisions.

Specifically, the court declared provisions that: 1) automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community; and 2) increase to 1 million people the population limit for rural districts to beyond NCUA’s statutory authority.

The court did grant summary judgment to NCUA on the portions of the rule concerning the omission of core areas from Core-based Statistical Areas and the provision allowing credit unions to serve adjacent areas.