Mon, Jun 26, 2017
The NCUA this week filed a motion to deny the American Bankers Association (ABA) request for summary judgment its lawsuit against the agency’s field-of-membership (FOM) rule. The request, filed in the U.S. District Court for the District of Columbia, also asks the court to grant NCUA’s motion for summary judgment.
In the motion, NCUA says Congress has authorized it to charter community credit unions, subject to a requirement limiting membership to “a well-defined local community, neighborhood, or rural district. Further, it adds that Congress, rather than define those terms itself, directed NCUA to prescribe a definition by regulation.
NCUA argues that, despite the ABA’s claims, the rule is a “permissible construction of statute.”