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In a big win for credit unions, a federal district court on Tuesday dismissed the Independent Community Bankers of America's lawsuit against the NCUA and its member business lending rule, stating that the grievances were not timely and that ICBA lacked standing.

"The court made the right decision in granting NCUA's motion to dismiss ICBA's groundless lawsuit. We had maintained all along that this was nothing more than a frivolous and ill-conceived effort by the bankers," said Dan Berger, president/CEO of NAFCU, and Jim Nussle, president/CEO of CUNA.

"Perhaps the bankers should put more effort into serving their own customers instead of filing meritless lawsuits that only result in wasted time and money," they added. (See the full statement.)

In the ruling, the court said even if the ICBA had established standing and timeliness, it still would have found that the NCUA rules satisfied the requirements established by the Administrative Procedures Act and existing case law.

The lawsuit was filed in the U.S. District Court for the Eastern District of Virginia in September. In November, NAFCU and CUNA moved jointly to file an amicus brief in support of the NCUA's motion to dismiss the lawsuit.

NCUA's final MBL rule eliminated credit unions' personal guarantee requirement and the waiver process. NAFCU praised the rule for easing the regulatory burden on credit unions and allowing them the flexibility to safely and soundly address the needs of their small-business members.

Both NCUA Board Chairman Rick Metsger and Board Member J. Mark McWatters were pleased with the court's decision.

"I congratulate NCUA's legal staff and the Justice Department for their work," Metsger said. "The decision affirms that the NCUA Board acted within its authority when it issued the final member business loan regulation."

Board Member J. Mark McWatters said, "The decision of the court … is a victory for small businesses throughout the country. I supported NCUA's member business lending rule because it is legally permissible pursuant to the Federal Credit Union Act and the rendered decision today affirms that."