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EDITORS, REPORTERS (CREDIT UNION MEMBERSHIP RULES)
America's Community Bankers has filed an amicus brief in a
lawsuit challenging the liberalized credit union membership rules
adopted by the National Credit Union Administration.
ACB joined with the American Bankers Association in the lawsuit
it brought in federal district court after the NCUA adopted rules
implementing provisions of last year's credit union law.
In its brief, ACB said NCUA violated the intent of Congress by
allowing multiple employer credit unions to add new groups with more
than 3,000 members when Congress clearly intended to limit the
number to 3,000.
ACB asserted that Congress intended to encourage the formation
of separately chartered credit unions instead of allowing credit
unions to parlay a small group of primary members "into an enormous
throng of people who are entitled to join an existing credit union."
"Congress obviously was concerned about unfettered credit union
growth -- not because access to credit and the promotion of thrift
are bad things, but because large credit unions that continue to
grow at an uncontrolled rate are able to compete on an unfair basis
with banks and other financial institutions that must pay taxes and
operate under increased regulatory requirements," ACB told the
court.
America's Community Bankers represents the nation's community
banks of all charter types and sizes. ACB members, whose aggregate
assets are more than $1 trillion, pursue progressive,
entrepreneurial and service-oriented strategies in providing
financial services to benefit their customers and communities.
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