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IONIA COUNTY BANKS TO APPEAL COURT DECISION IN PORTLAND FEDERAL CREDIT UNION CASE

 IONIA, Mich., Sept. 13 /PRNewswire/ -- Three Ionia County commercial banks and a savings institution announced today that they will appeal the decision of U.S. District Court Judge Wendell A. Miles that the National Credit Union Administration (NCUA) had a sufficient basis for its approval of the application of Portland Federal Credit Union to expand its field of membership to include most of Ionia County.
 The banks have instructed their attorneys, Warner, Norcross & Judd of Grand Rapids, Mich., to appeal the decision to the U.S. Circuit Court of Appeals in Cincinnati. The banks have 60 days from the date of the judge's decision, Aug. 24, 1993, to file their appeal with the higher court.
 While Judge Miles ruled that the banks had the right to sue the NCUA to challenge its actions, he also upheld the agency's approval of the Portland credit union's expansion despite overwhelming evidence that the expanded area does not meet the NCUA's own requirements. These rules require that a community-based credit union's service area be a "single, compact, well defined area" whose residents recognize it as a "distinct neighborhood, community or rural district" and "commingle and interact regularly." The judge also ruled that the NCUA had no obligation to provide a reasoned explanation for its decision to approve Portland's application.
 The Michigan Bankers Association and the Michigan League of Savings Institutions have agreed to assist the four banks with the cost of the appeal. Both organizations also plan to file "Friend of the Court" briefs in support of the banks' position in this case.
 -0- 9/13/93
 /CONTACT: Robert H. Becker of Community First Bank, 517-371-2911; Michael Magee of Independent Bank, 616-527-2400; Ronald Story of Ionia County National Bank, 616-527-0220; or Max Vipond of Union Bank, 616-374-3278/


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Publication:PR Newswire
Date:Sep 13, 1993
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