Iowa Credit Union League v. Iowa Department of Banking

UHLENHOPP, Justice.

In this appeal we must decide whether Iowa law authorizes credit unions to engage in the share-draft business.

I. The evidence discloses that credit unions constitute an extension of the cooperative movement into the saving-borrowing area. An idea was conceived to create nonprofit organizations consisting of members who were employees of a plant or business, residents of a vicinity, or other defined group. The member-savers could place funds with the organization and the member-borrowers could thereupon borrow at reasonable interest rates, to the benefit of both groups. Thus…