CUNA Board rejects ICBA’s lawsuit

CUNA’s Board of Directors passed a resolution stating CUNA’s commitment to fight against the baseless lawsuit filed against the NCUA and its member business lending rule by the Independent Community Bankers of America (ICBA). In support of that resolution, CUNA is sending a letter to all member credit unions with additional details.
“CUNA’s board and I will take whatever actions necessary to protect credit unions’ interests,” said Jim Nussle, president/CEO of CUNA. “We believe that the MBL rule is consistent with the law, which provides significant constraints on credit union member business lending. The NCUA acted appropriately and followed all procedures when issuing the MBL rule. The rule falls well within its statutory authority to interpret the application of the MBL cap.”
“CUNA supports the NCUA’s rule, which strips all restrictions from the MBL rule that are not specifically laid out in the Federal Credit Union Act,” says Nussle. “CUNA worked closely with the agency to ensure its waiver of the personal guarantee requirement, which became effective in May.”
Specifically, today the CUNA board passed a resolution to support the NCUA’s MBL final rule, as well as the agency’s proposed field-of-membership rule. The board also authorized CUNA to take whatever supportive actions are necessary to challenge the ICBA’s lawsuit.
Read more at CUNA.