The most important provision in the CUMAA for the consideration of this Note is the provision in section 109 concerning underserved areas.
The CUMAA states three requirements for an area to be underserved.
Following the passage of the CUMAA, the NCUA passed new regulations regarding the organization and field of membership of credit unions.
84) Although the NCUA recognized that the language of the CUMAA did "not expressly provide that authority to the other two charter types," it cited legislative history suggesting that Congress' intent was to allow "all types of federal credit unions [to] be able to add underserved areas.
In applying the first prong of Chevron, it is clear that while the CUMAA allowed multiple common-bond credit unions to expand into underserved areas, the absence of statutory language that would allow non-multiple common-bond credit unions to do the same does not specifically prohibit those credit unions from doing so.
100) On the other hand, the Senate report on the matter contains language explicitly stating that the underserved area exception applies to multiple common-bond credit unions, but is silent as to whether the CUMAA precludes other types of credit unions from doing so.
106) Its conclusion was that the possible harm to credit unions and members was outweighed by the ABA litigation and the uncertainty and ambiguity created by the CUMAA.
112) The Navy Federal Credit Union, because of questions over whether the "plain language" of the CUMAA allowed credit unions other than multiple common-bonds to expand into underserved areas, "believe[d] that NCUA ha[d] appropriately declared a moratorium on the granting of underserved areas to non-multiple common-bond federal credit unions.
In addition, community banks face formidable competition from credit unions due to their tax-exempt status aided by the exemption from provisions of the Community Reinvestment Act, and the recent legislation of CUMAA of 1998.
A growing body of evidence suggests that the growth of credit unions aided by favorable regulation of CUMAA of 1998, has been strong in recent years, especially for those that are based on multiple and community bond membership.