Federal judge strikes down part of NCUA field of membership rule
In a rare joint statement, CUNA, NAFCU and CUNA Mutual Group supported and disagreed with parts of the ruling.
A federal judge on Thursday struck down two sections of the NCUA’s new field-of-membership rule, saying that the sections violate the Federal Credit Union Act.
But in a mixed ruling in the suit filed by the American Bankers Association, U.S. District Judge Dabney Friedrich said that the remainder of the rule conforms to federal law.
Friedrich struck down sections of the rule that:
- Automatically qualified a Combined Statistical Area or a contiguous portion of it with fewer than 2.5 million people to be a local community.
- Increases to one million people the population limit for rural districts.
The remainder of the rule, dealing with Core-Based Statistical Areas and adjacent areas, do not violate the credit union act.
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