The attorneys general for Kansas and South Carolina on March 27 joined the National Association of State Chartered Credit Union Supervisors in its lawsuit to block a federal regulation that would alter governance of the industry's liquidity centers and trade groups.
The state regulators' association filed suit on Feb. 28 against the National Credit Union Administration, charging the agency's plan to ban shared management between industry liquidity centers and trade groups tramples over state's rights. Twenty-seven of the 43 corporates, as well as U.S. Central Credit Union in Overland Park, Kan., are state-chartered.
In an interview, association president Douglas Duerr said the new backers support the state regulators' contention that state laws would be violated by the NCUA regulation, effective Jan. 1, 1996.
Mr. Duerr said he expects other states to support the suit, either signing on as co-plaintiffs or filing friend-of-the-court briefs. The Credit Union National Association has filed a separate lawsuit against the regulator over the issue.