NCUA Abruptly Cancels Vote OnUnderserved

Register now

ALEXANDRIA, Va. - (05/24/06) -- Due to legal considerations, theNCUA Board has postponed a controversial vote on a amendment to theagency's field of membership rules that would bar communitycharters and single common bond credit unions from addingunderserved communities to FOMs. The action, scheduled forThursday, has been forced by a legal challenge to the underservedrules brought by the American Bankers Association. The bankerscharge that NCUA has violated provisions of the Federal CU Act bygranting more than 200 underserved FOMs for community charteredcredit unions and that the FCU Act only allows multiple groupcredit unions to add underserved communities.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER