America's Community Bankers, Independent Community Bankers of America

Document Sample
America's Community Bankers, Independent Community Bankers of America Powered By Docstoc
					                                 Joint News Release
                                                                                   August 10, 2005

Contacts: ACB ─ Jim Eberle (202) 857-3145           ICBA ─ Karen Tyson (202) 315-2454.

                         America’s Community Bankers,
                  Independent Community Bankers of America
               Support Community Credit Union Suit Against NUCA
    WASHINGTON, D.C. ─ America's Community Bankers and the Independent Community
Bankers of America have filed an amicus brief in support of Community Credit Union’s lawsuit
against the National Credit Union Administration.

       The brief urges the U.S. District Court for the Eastern District of Texas to hold that
NCUA’s action invalidating the overwhelming vote of CCU's members to convert its charter to a
mutual savings association is arbitrary, capricious, and contrary to law.

        “This is an ‘origami’ case,” the brief explains, because the NCUA action was not based
on the substance of the disclosure CCU made to its members, but rather revolves entirely on how
a piece of paper that transmitted information about the conversion to credit union members was
folded. Origami is the Japanese art of folding paper into decorative shapes.

         This is a case about charter choice. It is about the right of credit union members to choose
the charter that would “better serve the interests of its members and of the local community,” the
brief notes. “Congress and the States have provided many forms of charters for depository
institutions,” the brief explains. And it has provided depository institutions “with a great deal of
freedom to convert from one type of charter to another.”

      Some 33 state bank associations also signed on to the brief, which was prepared by
Venable LLP and filed late Tuesday.

        “What NCUA attempts to characterize as ‘interpretation’ of its own rule is, in reality, an
attempt to impose an illegal, bootleg requirement, which was never subjected to public notice
and comment and which is without any support whatsoever in the text of the rule the agency
actually adopted,” the brief says.
       CCU, of Plano, Texas, is a member of ACB. The ACB Board of Directors recently
authorized membership for credit unions planning a conversion.

The Independent Community Bankers of America, the nation’s voice for community banks, represents
the largest constituency of community banks of all sizes and charter types in the nation, and is
dedicated exclusively to representing the interests of the community banking industry.

America's Community Bankers is the national trade association representing community banks
that pursue progressive, entrepreneurial and service-oriented strategies to benefit their customers
and communities. ACB represents the majority of mutual community banks in the nation.

The following state associations joined in the brief: Arkansas Community Bankers, Independent
Bankers of Colorado, Connecticut Bankers Association, Florida Bankers Association,
Community Bankers Association of Georgia, Heartland Community Bankers Association,
Illinois League of Financial Institutions, Indiana Bankers Association, The Community Bankers
Association of Indiana, Inc., Community Bankers Association of Kansas, Kentucky Bankers
Association, Community Bankers of Louisiana, Maine Association of Community Bankers,
Massachusetts Bankers Association, Independent Community Bankers of Minnesota, Minnesota
Bankers Association, Missouri Bankers Association, Nebraska Independent Community
Bankers, New Hampshire Bankers Association, New Jersey League of Community Bankers,
Community Bankers Association of New York State, Independent Bankers Association of New
York, Independent Community Banks of North Dakota, Ohio Bankers League, Community
Bankers Association of Ohio, Pennsylvania Association of Community Banks, Independent
Community Bankers of South Dakota, Texas Savings and Community Bankers Association,
Washington Financial League, Independent Bankers Association of Texas, Washington
Independent Community Bankers of Association, West Virginia Association of Community
Bankers and Wisconsin Bankers Association.