Capital Briefs: Credit Unions Request Delays on 2 Suits

Credit unions will seek delays on two court cases brought by the banking industry in order to give Congress more time to ease membership rules for the nonprofit financial institutions.

A federal appeals court here has set a May 26 deadline for motions on whether it should lift a stay that has let occupation-based credit unions continue adding members from companies outside their common bond that they already serve.

The Supreme Court ruled Feb. 25 that credit union members must serve a single, common bond, but lower courts have delayed implementing the decision while lawmakers consider legislation that would reverse it.

That bill passed the House by a landslide in April and is expected to pass the Senate next month.

The credit union industry plans to ask the court to extend that deadline at least 30 days to give the Senate time to act, a spokesman for the National Association of Federal Credit Unions said.

The legislation would let credit unions serve companies with fewer than 3,000 employees.

In addition, credit unions are backing plans by the Justice Department to delay a lawsuit against Pt. Mugu Federal Credit Union in Ventura County, Calif.-which could affect the membership rules for community-based credit unions-until Congress adjourns this fall, the NAFCU spokesman said.

Michael F. Crotty, the American Bankers Association deputy counsel for litigation, said the banking industry has not decided how it will respond.

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