Joint News Release
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Contact:
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Robert Schmermund
(202) 857-3104
Jim Eberle
(202) 857-3145
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ICBA
Karen Tyson
(202) 315-2454
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For Immediate Release
August 10, 2005
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E-mail:
[email protected] |
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AMERICA’S COMMUNITY BANKERS,
INDEPENDENT COMMUNITY BANKERS OF AMERICA
SUPPORT COMMUNITY CREDIT UNION SUIT AGAINST NCUA
WASHINGTON, D.C. — America’s Community Bankers and the Independent Community Bankers of America have filed an amicus brief in support of Community Credit Union’s lawsuit against the National Credit Union Administration.
The brief urges the U.S. District Court for the Eastern District of Texas to hold that NCUA’s action invalidating the overwhelming vote of CCU’s members to convert its charter to a mutual savings association is arbitrary, capricious, and contrary to law.
“This is an ‘origami’ case,” the brief explains, because the NCUA action was not based on the substance of the disclosure CCU made to its members, but rather revolves entirely on how a piece of paper that transmitted information about the conversion to credit union members was folded. Origami is the Japanese art of folding paper into decorative shapes.
This is a case about charter choice. It is about the right of credit union members to choose the charter that would “better serve the interests of its members and of the local community,” the brief notes. “Congress and the States have provided many forms of charters for depository institutions,” the brief explains. And it has provided depository institutions “with a great deal of freedom to convert from one type of charter to another.”
Some 33 state bank associations also signed on to the brief, which was prepared by Venable LLP and filed late Tuesday.
“What NCUA attempts to characterize as ‘interpretation’ of its own rule is, in reality, an attempt to impose an illegal, bootleg requirement, which was never subjected to public notice and comment and which is without any support whatsoever in the text of the rule the agency actually adopted,” the brief says.
CCU, of Plano, Texas, is a member of ACB. The ACB Board of Directors recently authorized membership for credit unions planning a conversion.
Click here to read the Motion of Amici Curiae.
Click here to read the Memorandum of Amici Curiae.
America’s Community Bankers is the national trade association committed to shaping the future of
banking by being the innovative industry leader strengthening the competitive position of
community banks. To learn more about ACB, visit
www.AmericasCommunityBankers.com.
The Independent Community Bankers of America, the nation’s voice for community banks, represents the largest constituency of community banks of all sizes and charter types in the nation, and is dedicated exclusively to representing the interests of the community banking industry.
The following state associations joined in the brief: Arkansas Community Bankers, Independent Bankers of Colorado, Connecticut Bankers Association, Florida Bankers Association, Community Bankers Association of Georgia, Heartland Community Bankers Association, Illinois League of Financial Institutions, Indiana Bankers Association, The Community Bankers Association of Indiana, Inc., Community Bankers Association of Kansas, Kentucky Bankers Association, Community Bankers of Louisiana, Maine Association of Community Bankers, Massachusetts Bankers Association, Independent Community Bankers of Minnesota, Minnesota Bankers Association, Missouri Bankers Association, Nebraska Independent Community Bankers, New Hampshire Bankers Association, New Jersey League of Community Bankers, Community Bankers Association of New York State, Independent Bankers Association of New York, Independent Community Banks of North Dakota, Ohio Bankers League, Community Bankers Association of Ohio, Pennsylvania Association of Community Banks, Independent Community Bankers of South Dakota, Texas Savings and Community Bankers Association, Washington Financial League, Independent Bankers Association of Texas, Washington Independent Community Bankers of Association, West Virginia Association of Community Bankers and Wisconsin Bankers Association.
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