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Article: NCUA seeks to quash bank's suit over deposits from nonmembers. (National Credit Union Administration, First City Bank, Murfreesboro, Tennessee) (Brief Article)
- Article from:
- American Banker
- Article date:
- June 17, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The National Credit Union Administration was expected this week to try to quash a lawsuit challenging credit unions' right to accept deposits from nonmembers.
The federal regulator is arguing that First City Bank, Murfreesboro, Tenn., lacks standing to sue. That's the same argument NCUA has used -- unsuccessfully, so far -- in suits filed by bankers over credit union customer-base expansions.
Still, NCUA staff attorney Steven Widerman said Tuesday that he expects the U.S. District Court for the Middle District of Tennessee to grant the agency's request. He wouldn't elaborate.
Cites Congressional Action
If the court does allow the bank to sue, the NCUA ...