WASHINGTON—NAFCU and CUNA have filed an amicus brief supporting NCUA’s 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, NAFCU president/CEO, and Jim Nussle, CUNA president/CEO, in a joint release. “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.