RICHMOND, Va. — The Coalition for Credit Union Charter Options has argued in a brief before the Fourth Circuit Court of Appeals that its member credit unions are actively considering converting to a mutual bank charter and that they are being financially harmed by NCUA's over regulation of the conversion process.

The brief, which was filed March 28, argues that the District Court for Eastern Virginia erred when it judged that Coalition credit unions were not being harmed because they had no immediate plans to convert to mutual bank charters and that credit unions actively considering conversion and not moving forward because of NCUA regulations were paying for the agency's regulations.

"As a consequence, Coalition members are being harmed by having both the new business opportunities and lower operating costs associated with the bank charter overpriced and thereby indirectly denied by the NCUA's illegally adopted regulations," the Coalition argued in its brief. "For example, and as set forth in Paragraph 8 of the complaint, credit unions must place an amount equal to one percent of the deposits into an account with NCUSIF."

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

  • 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.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.