WASHINGTON–Following a motion by NCUA to dismiss the case, the Independent Community Bankers of America (ICBA) said it is reasserting its challenge to what it called the agency’s “unlawful commercial lending rule,” and further stated NCUA has tried to “evade judicial review.”
In its response, ICBA called on the federal court reviewing what it dubbed “NCUA’s dubious final rule” to reject the agency’s motion to dismiss the case.
“ICBA reaffirms its pledge to vigorously challenge the NCUA’s commercial lending rule following the agency’s motion to dismiss ICBA’s lawsuit,” ICBA President and CEO Camden R. Fine said in a statement. “Community banks, consumers and the financial system at large are threatened by the NCUA’s rule allowing tax-exempt credit unions to exceed congressional limits on commercial lending activity. Contrary to NCUA’s claim that ICBA lacks standing to bring the suit, ICBA is in the best position to do so on behalf of its members.”
The ICBA is arguing that in moving to dismiss ICBA’s complaint, NCUA has mischaracterized the case, which is both timely and ripe for resolution, ICBA said.
“This brief demonstrates ICBA’s standing in the case by outlining the tangible financial harm to community banks and local communities caused by the NCUA’s flawed rule,” the ICBA said. “In fact, as the brief shows, the rule has already negatively affected the value of ICBA members and other community banks.”
ICBA filed as exhibits to its brief declarations from several community bankers and its executive vice president and senior regulatory counsel, Christopher Cole, describing how widespread the injury is to ICBA members.
The ICBA filed suit earlier this year after NCUA approved broadened member business lending rules.
The lawsuit, Independent Community Bankers of America v. National Credit Union Administration, was filed in the U.S. District Court of the Eastern District of Virginia in September.