DENVER—A federal judge on Monday heard arguments over whether he should force the Federal Reserve to grant an account to a credit union chartered here to serve marijuana-related businesses.
To date, the Federal Reserve Bank of Kansas City has refused to grant The Fourth Corner Credit Union a master account that would allow it to facilitate electronic payments.
Mark Mason, an attorney who is representing The Fourth Corner Credit Union, argued that federal law does not give the Federal Reserve discretion in granting master accounts, as the credit union has already been granted a charter by the Colorado state regulator, according to the Cannabist.
An attorney for the Federal Reserve, Scott Baker, told the court that granting Fourth Corner a master account would violate federal law, which continues to prohibit the sale of marijuana even as it has been legalized in various forms by a number of states.
The case is being heard by Judge R. Brooke Jackson. Judge Jackson said he would take Fourth Corner’s request under advisement and would issue a written decision, but did not provide a timeline.
The Cannabist reported that Jackson’s questions seem to indicate he is “leaning toward declining to issue the injunction.”
“I would be forcing the Reserve Bank to give a master account to an illegal business,” Jackson said at one point.
NCUA has already denied Fourth Corner NCUSIF coverage. The credit union in turn filed a 78-page complaint against the regulator.
A full report on the credit union and its objectives can be found here.