District Court Dismisses ICBA MBL Suit, Laying Groundwork for NW CU Flexibility
The decision is a substantial victory for the CUNA/League system, and the Main Street businesses represented by America’s credit unions.
A U.S. District Judge this week dismissed a lawsuit filed by the Independent Community Bankers of America (ICBA) against the NCUA member business lending rule exempting commercial participation from the Member Business Lending cap. The win was hailed as a substantial victory for America’s credit unions and the Main Street businesses they represent.
“I’m proud of what the CUNA/League system has accomplished. It’s a perfect example of the type of 360-degree advocacy that affects change,” said CUNA President and CEO Jim Nussle.
“This win is a clear and resounding example of credit unions and their members—including nearly 20,000 staff, and six million members in the Northwest, standing together as advocates,” added NWCUA President and CEO Troy Stang. “This action directly impacts federal credit unions, and it also lays the groundwork for state-chartered credit unions to invoke parity, and thus, update their rules.”
NWCUA AVP of Regulatory Advocacy John Trull added that your Association is working with prudential regulators in Oregon and Washington to modernize state MBL rules.
“Credit union advocates with experience in business lending will be critical to ensuring state MBL rules reflect this hard-fought win,” he said.
According to the court’s opinion, the lawsuit was dismissed based on ICBA’s lack of standing and timeliness. In his opinion, Judge Cacheris stated that even if the ICBA had established standing and timeliness, the court said it still would have found that the rules satisfied the requirements established by the Administrative Procedures Act and existing case law.