HARRISBURG, Pa. — Judge Yvette Kane of the U.S. District Court for the Middle District of Pennsylvania denied a motion for discovery by the American Bankers Association and other plaintiffs in its lawsuit against NCUA.

The plaintiffs had requested discovery in the nearly two-year-long battle regarding NCUA's approval of a community charter for Members 1st Federal Credit Union and subsequent others, because they alleged NCUA's record was incomplete and biased on the community charter approval. The credit union submitted its initial application for eight counties, which was rejected, then later submitted a draft for a six-county area that NCUA commented on and led Members 1st to the submission of the current community charter being challenged. AmeriChoice FCU, and New Cumberland FCU were also approved for the same community and are named in the suit.

The bankers claim this back and forth demonstrated bias in the application process. Judge Kane commented in her opinion, "Although the Banks allege that the NCUA acted in bad faith by coaching the Credit Unions, the Banks offer no support (and the Court is aware of none) for the proposition that the agency's willingness to meet with Members 1st and discuss its charter application rises to the level of bad faith necessary to warrant deviating from the firmly established rule that review must be limited to the administrative record…Furthermore, any allegation of bad faith must be considered in light of the undisputed fact that the NCUA rejected the initial, more expansive Members 1st community-charter application."