ABA Drops Utah FOM Lawsuit; NCUA Says it is Not Over Yet

SALT LAKE CITY – The American Bankers Association announced last week that it agreed to dismiss its lawsuit pending in Utah, challenging the authority of non-multiple common bond credit unions to adopt underserved areas, but, according to NCUA the case is not technically dismissed yet.

At the June NCUA Board meeting, the agency approved a final rule stating that only multiple common bond credit unions could adopt underserved areas as the literal language of the Credit Union Membership Access Act (H.R. 1151) states. America First Federal Credit Union out of Ogden, Utah had already been stripped of its underserved areas. However, credit unions have argued that legislative history supports a different view.