Missouri CUs Start To Defect

ALEXANDRIA, Va. - (07/14/06)--The first of what is expected to be anumber of state-chartered credit unions in Missouri have begunpetitioning NCUA to convert to a federal charter, as the bankers'field of membership lawsuit has left them all in limbo. The NCUABoard announced Thursday it will vote next week on an aplicationfor Aerospace CU, one of the Show-Me State's biggest credit unions,for a federal community charter. The credit union is among 10 ofthe largest state charters in Missouri left in a void by a statecourt ruling invalidating the state's FOM rules, among the mostliberal in the country. The credit unions are expected to appealthe ruling, but a final decision on the appeal could take more thana year, leaving the broad community grants awarded those creditunions up in the air until then.