The Credit Union National Association is suing the government over a rule dictating the management structure of the industry's liquidity centers.
In the suit, CUNA charges that the National Credit Union Administration violated the Administration Procedures Act by failing to provide factual support for the regulation or weigh alternatives. Further, the regulation, adopted in November, preempts state laws, the 32-page brief said.
The Madison, Wis.-based trade group submitted its brief on Feb. 3 in the U.S. District Court for the Eastern District of Virginia. The NCUA is headquartered in Alexandria, Va.
The NCUA's regulation, effective Jan. 1, 1996, will limit the number of managers corporate credit unions may share with CUNA and its subsidiaries.
A CUNA news release said the trade group, represented by the Washington firm Bingham, Dana & Gould, had an "excellent" chance of victory, but there is reason to believe some in the trade group are leery of the odds.