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League Fights Bank Effort to Win New Branch Lease Rights on Military Bases

Authored By: Lewis Wood on 8/31/2021

Your League has written Reps. Elaine Luria (D-2nd) and Rob Wittman (R-1st) asking them to oppose any provision in the 2022 National Defense Authorization Act that would require DoD to treat banks the same as credit unions when it comes to leases for on-base branches.

Both lawmakers serve on the House Armed Services Committee, which will begin its markup of the National Defense Authorization Act (NDAA) for fiscal year 2022 on Wednesday at 10 a.m. 

"Congress gave the DoD discretionary authority to allow credit unions to use space on military bases at a nominal rate because of their focus and dedication to the servicemember over profit. Other financial institutions cannot match the credit union difference," notes the League's letter. "Further, banks already can obtain leases at nominal cost under the Military Leasing Act, 10 USC §2667," but those banks would need to demonstrate to DoD how they would use their lease to serve and provide value to the men and women of the base.

Your League and other industry partners have pushed lawmakers to reject this proposal. 

Last month, your League wrote Sen. Tim Kaine expressing our concerns and making the senator aware of the joint letter forwarded by the Credit Union National Association, the Defense Credit Union Council and the National Association of Federally Insured Credit Unions.

Related: House Committee to Begin Markup of NDAA

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