ABA to appeal federal judge’s ruling that upheld part of FOM rule
The ABA will appeal a portion of the rule dealing with allowing credit unions to add an add members in adjacent area.
The American Bankers Association will appeal a federal judge’s ruling that upheld portions of the NCUA’s Field of Membership rule, according to documents filed in federal court.
On March 29, U.S. District Judge Dabney Friedrich ruled that sections of the rule violated federal law, while the rest did not.
The ABA will appeal a portion of the rule dealing with allowing credit unions to add members in an adjacent area under certain circumstances.
That section of the rule allows a credit union serving a Single Political Jurisdiction, Core-Based Statistical Area, or Combined Statistical Area to add an adjacent area as long as the credit union can demonstrate if the credit union can demonstrate that a “sufficient level of interaction” exists between the adjacent area and the already-served area.
She said that the NCUA chose “reasonable factors” for evaluating whether adjacent areas should be included.
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