ICBA reasserted its challenge to the National Credit Union Administration’s unlawful commercial lending rule with a vigorous response to the agency’s effort to evade judicial review. In a new response, ICBA called on the federal court reviewing the 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 Cam Fine said. “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.”
In moving to dismiss ICBA’s complaint, the NCUA mischaracterized the case, which is both timely and ripe for resolution. ICBA’s brief demonstrates the association’s standing in the case by outlining the tangible financial harm to community banks and local communities caused by the NCUA’s flawed rule, which has already negatively affected the value of community banks. ICBA filed, as exhibits to its brief, declarations from several community bankers and its executive vice president and senior regulatory counsel, Chris Cole, describing how widespread the injury is to ICBA members.
ICBA’s lawsuit challenges the agency’s unlawful rule issued earlier this year allowing credit unions to exclude nonmember commercial loans or participations from their calculations of the member business loan cap. If allowed to stand, the NCUA’s final rule would allow tax-exempt credit unions to exceed limitations on commercial lending activity established by Congress while relaxing regulatory oversight. Read ICBA Release.