CUNA President Jim Nussle on Tuesday released a legal opinion solicited by the trade that argues the NCUA has no legal standing to enforce risk-based capital standards. The opinion from Washington-based law firm Venable LLP said the NCUA is only authorized to establish a single risk-based net worth requirement specifically tied to an adequately-capitalized requirement.

The opinion further argues the NCUA's legal justification for the rule was flawed. On Tuesday, the NCUA released legal opinions it obtained to support the rule.

“It is rare that opinions like this result in successful legal challenges in the courts. The fact is that courts are reluctant to reverse the authority of regulators,” Nussle wrote to his board Tuesday in a memo provided in the release.

Still, Nussle credited CUNA's legal opinion and lobbying efforts with changes to the revised rule like the lowering of the minimum capital requirement and eased risk weights.

“The original rule was a regulation the agency could not properly defend in the courts or before Congress. CUNA will continue to work with NCUA to improve the revised proposed risk-based capital rule and make it defensible,” he said.