Denver-based Fourth Corner Credit Union has again sued the Federal Reserve Bank of Kansas City.
Fourth Corner CU, which was formed to serve the marijuana industry, sued the regulator in 2015 for "unlawfully" denying it access to the Fed's payment system. An appeals court ruled in June to allow it to reapply for a master account, with the condition that it serve only legal businesses.
The credit union filed a new lawsuit on Sept. 29 with the U.S. District Court for the District of Colorado, after being informed that, while "the [Reserve] Bank has not denied TFCCU's request," it would require additional information and a process longer than the typical five to seven business days.
Fourth Corner CU is requesting that the court order the Kansas Fed to "immediately issue" a master account, as the Reserve Bank "does not have discretion to decide which non-member depository institutions are entitled to Federal Reserve Bank services." In its arguments, the credit union noted retail marijuana sales will start in California on Jan. 1, 2018 — exponentially magnifying "the untenable cash-only situation."