A concern over states' rights and a question about the NCUA's legal authority over the member business lending proposal during an NCUA board meetingThursday prompted a Hail Mary pass by one board member.

The monthly board meeting ended with a contentious board memberdiscussion, as proposed changes to wording in the MBL proposal fromBoard Member J. Mark McWatters prompted a tense exchange at the endof the meeting.

McWatters asked for changes to the states' rights portion insection 723.10 of the MBL proposal, which exempts federallyinsured, state chartered credit unions from complying if a statesupervisory authority provides a state commercial and MBL rule foruse by federally insured credit unions chartered in that state. Theprovision said this exemption can occur “provided the state rule atleast covers all the provisions in this part and is no lessrestrictive, upon determination by (the) NCUA.”

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