ALEXANDRIA, Va.—With NCUA announcing it will hold a public hearing on a request from Dade County FCU to expand its existing community charter, one attorney believes any actions taken by the board during the Sept. 23 hearing will likely not be challenged.
While NCUA has set a date for the hearing, the federal lawsuit following President Trump’s removal of Board Members Todd Harper and Tanya Otsuka earlier this year could impact any decisions handed down during the public hearing. The case, currently pending in the U.S. District Court for the District of Columbia, challenges the legality of the removals and questions the validity of actions taken by the NCUA board while operated under a single board member.
But Brandy Bruyere, partner at Honigman, LLP, told CUToday.info that it is possible the board actions taken during the hearing could be challenged.
“While the NCUA operates with a single board member and treats that as a quorum, that creates a gray area for actions that require board action,” Bruyere said. “The NCUA’s Chartering and Field of Membership requirement directs the Office of Credit Union Resources and Expansion to hold public hearings for this kind of charter change.
“The FCU Act directs the NCUA board to, via regulation, determine what a ‘well-defined local community’ is for community charters and the regulation refers to CURE. A party would need to find this charter request objectionable enough to spend the money on litigation, which gets expensive,” Bruyere said.
Regarding the Harper/Otsuka case, Bruyere pointed out there are a number of lawsuits pending that address the underlying issue of whether the president can fire those appointed to various independent agencies without cause. ,
“The Supreme Court is likely to end up deciding on the topic more generally, so, we’re still in a waiting pattern there,” Bruyere said.