HARRISBURG, Pa. (12/19/08)--The Pennsylvania Supreme Court Thursday reinstated Belco Community CU's seven-county community charter for central Pennsylvania, reaffirming the Pennsylvania Department of Banking's initial decision that was overruled in state court.
In addition, the Supreme Court also remanded the case back to state court on a constitutional issue regarding the bankers' rights to information contained in the credit union's application and to public debate (Life is a Highway Dec. 18).
"Throughout the litigation, there's been a legal tug of war between the bankers' desire to obtain information from Belco Community's application and the credit union's desire to maintain the confidentiality of information it deemed proprietary," said Rick Wargo, Pennsylvania Credit Union Association (PCUA) executive vice president/general counsel.
The issue will be addressed by the state court sometime next year.
"This is a win for Belco Community CU and all Pennsylvania credit unions," said Jim McCormack, PCUA president/CEO. "It's unfortunate that this isn't the end of the road on this matter. We will continue working with the Department of Banking as the case goes back to [state court]."
PCUA staff is conducting further analysis on the ruling.
The $268.6 million asset, Harrisburg, Pa.-based Belco Community CU; PCUA; Department of Banking; and bank parties presented oral arguments regarding the community charter to the Pennsylvania Supreme Court on April 16.
courtesy of cuna.org
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