X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SHERMAN, Texas – In filings before the Federal Circuit Court which will decide its ongoing legal battle with the $1.4 Community CU and $1.1 billion OmniAmerican CU, NCUA both attacked the Community CU’s assertions that it had acted improperly in promulgating its charter change disclosure regulations and defended those regulations as consistent with those promulgated by other Federal regulators overseeing similar charter changes. The two Dallas areas credit unions are seeking to change their charters to those of mutual banks and have argued in their complaints to the Court that NCUA’s regulation of such charter change violates Federal law which calls for such regulation to be consistent with other regulators and no more or less restrictive. They also argued that NCUA applied the most recent of its charter change regulations in an unfair manner meant to target Community Credit Union and that they need injunctive relief in order not to be irreparably harmed by the agency’s actions. Although OmniAmerican was not an original plaintiff in the case, it requested and received permission to join the legal action on August 1 and filed a complaint brief substantially similar to Community’s. NCUA has declined to validate both credit unions’ charter balloting, arguing that the credit unions failed to conduct their disclosure mailings in the manner required by its regulations and to which they each allegedly agreed. Both credit unions have requested the Court force the agency to validate their charter votes without forcing them to conduct more member balloting with disclosures which, the agency said, would comply with its regulations. NCUA opened its August 2 argument with the observation that the Fifth Circuit, which includes the Court in which the credit unions brought their complaint, declares that injunctive relief is an “extraordinary remedy” and something “to be treated as an exception rather than the rule.” The agency also observed that in cases where injunctive relief has been granted, the Courts have done so to “freeze the status quo” until after more detailed hearings can be held on the merits of the case. But CCU’s request does not seek to maintain the status quo but to “change the status dramatically and obtain all the relief it seeks in the complaint.” Community does not seek mere injunctive relief, the agency’s lawyers argued, the credit union seeks a mandatory preliminary injunction, something which must meet a higher standard as well.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.