I can hardly believe this is late October and my second article. Time appears to be going by faster every day, except when Presidential candidates are debating. Those three debates have to be the longest 90 minutes on record. And then they are followed by hours and days of news commentators reliving and analyzing them. Well, I hope I have that out of my system.
I hope you all have been following the ICBA’s lawsuit against the National Credit Union Administration (NCUA) alleging that the agency violated the Federal Credit Union Act when it issued its final member business lending rule allowing tax-exempt credit unions to exceed limits on commercial lending established by Congress. NCUA’s final rule excludes from a credit union’s member lending limit (MBL cap) commercial loans as well as participations in commercial loans that were purchased from another credit union as long as the loan was made to someone who is not a member of the purchasing credit union. This is the same “regulatory cheerleading” we experienced with Farm Credit when their regulator called commercial loans investments. I hope that the court decides that rules cannot expand the language contained in the law.
To make this successful, ICBA has asked that we all consider making a donation to ICBA’s legal fund to pay for the expense of the lawsuit. If we all make a small contribution, hopefully it will add up to a successful outcome.
Also the ICBA is asking that member banks that experience
Credit Union completion for commerce loans to complete a
short questionnaire: If your bank has lost a commercial loan to a credit
union because of interest rate or terms or for some other reason, Please visit https://www.icbsd.com/stop-the-ncua.html to fill out and submit a questionnaire.