Missouri CUs Seek Rehearing In FOMRuling

JEFFERSON CITY, Mo. - (05/01/06) – Credit unions affected by thestate court’s overturning of community chartering rules haveasked the Cole County Superior Court for a rehearing in the case,which could have dire consequences of many of Missouri’slargest state chartered credit unions. In addition, the state CUCommission, which set the field of membership rules, has asked thecourt to amend its decision, which found that community chartersbased on counties, cities, telephone area codes, zip codes, as wellas multiple jurisdiction, are invalid because they do not conformwith the state’s and NCUA’s requirement that communityFOMs be comprised of well-defined, local neighborhood or ruraldistrict.” The court’s ruling strikes down expansivecommunity FOMs awarded in recent years to most of Missouri’sbiggest state charters, including: First Community CU, Vantage CU,St, Louis Postal CU, St. Louis Telephone Employees CU, Alliance CUand Electro Savings CU. The challenge to the FOM rules was broughtby several local banks and the Missouri Bankers Association, whichpetitioned the court last week for $107,000 in legal fees it spenton the court case.