National Credit Union Administration Board v. US Bank National Association, No. 17-756 (2d Cir. 2018)Annotate this Case
NCUA, an independent federal agency responsible for regulating and insuring federal credit unions, liquidated five corporate credit unions and succeeded to ownership of their assets, including residential mortgage-backed securities trusts (RMBS Trusts). NCUA subsequently brought common law and statutory claims against the trustees of the RMBS Trusts. The district court twice dismissed the derivative claims and subsequently denied NCUA's motion for leave to supplement its Second Amended Complaint (SAC).
The Second Circuit followed the plain language of the contracts under which NCUA transferred the RMBS Trust certificates, and held that the district court correctly found that NCUA lacked derivative standing to bring claims based on those certificates. The court also held that the district court did not abuse its discretion when it denied NCUA's motion for leave to supplement. Accordingly, the court affirmed the judgment.