Utah CUs Creep Back Into ForbiddenTerritory

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SALT LAKE CITY - (07/07/05) -- Two Utah credit unions that werekicked out of surrounding counties by last year's federal courtruling are slowly moving back into the areas barred by the courtdecision. NCUA said Wednesday it has approved requests fromGoldenwest FCU, in Ogden, to serve 280,000 residents in low-incomecommunities in Salt Lake and Davis counties; and from America FirstFCU, also in Ogden, to serve 90,000 residents in low-incomecommunities in Weber and Davis counties. The two credit unions wereinitially approved to serve all of those counties as part of acontroversial six-county community field of membership when theyconverted to federal charter in 2003 to flee the state's effort totax state chartered credit unions. But a federal court struck downthe six-county FOM in a December 2004 ruling as too broad. Thatleft Goldenwest FCU to continue serving multiple groups, andAmerica First CU to serve just Salt Lake County, and temporarilybarring them from the other counties in the originalFOM.

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