DENVER—Fourth Corner Credit Union's case against the NCUA over share insurance coverage has taken a new turn—NCUA is urging a federal court to dismiss the current lawsuit as moot since the credit union amended its business plan and field of membership, and says the credit union should reapply for coverage.
As CUToday.info reported, the Fourth Corner Credit Union has asked a federal court to deliver a faster resolution in its case against the NCUA now that it has received conditional approval from the Federal Reserve Bank of Kansas City to serve marijuana advocates and groups that support legalized marijuana or provide ancillary services to legal marijuana businesses in Colorado. The credit union would not serve marijuana businesses directly.
Fourth Corner sued the NCUA in 2015 for denying it federal share insurance. According to the credit union's motion to compel, filed earlier this month, NCUA has asked Fourth Corner to voluntarily dismiss the case and reapply for insurance but has not given the credit union any assurances that the agency will timely act on a new application (or approve it) if they reapply. Instead of dropping the suit, Fourth Corner is seeking resolution through mediation. Fourth Corner has asked that the court order mediation to take place within 30 days. The court would stay the proceedings during the dispute resolution process.
The court must now decide whether to compel mediation – as requested by Fourth Corner – or dismiss the case based on NCUA's new motion, NAFCU reported.