NCUA files brief in FOM appeal, CUNA to file by Dec. 13
NCUA filed its opening brief in its appeal against a ruling regarding its field-of-membership (FOM) rule, arguing its changes to FOM regulations are within its statutory authority. CUNA will file an amicus brief in support of NCUA by Dec. 13.
NCUA finalized its CUNA-supported FOM rule in October 2016, and the American Bankers Association sues the agency in December 2016. The U.S. District Court of the District of Columbia ruled in March 2018, upholding two challenged portions of the rule and 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 be beyond NCUA’s statutory authority.
NCUA’s brief argues the agency “reasonably exercised its responsibilities” in defining “local” and “rural” communities, and that the district court “erroneously held the agency’s definitions were precluded by the statutory text.”