In a historic bid to chart new legal ground on community charters, a Kentucky federal credit union has converted to a state charter, marking the first such switch in the state in 30 years.
Switch from federal to state charter first of its kind in 30 years, follows rejection by NCUA.
Kentucky credit unions hailed a May 20 ruling by the Kentucky Supreme Court that struck down a long-running banker challenge on community charter field of membership expansion.
After being in a court-ordered field of membership limbo lasting six years, one Louisville, Ky. CU said it stands ready now to finally sign up new members and expand services in one of its suburban branches.
Credit union lawyers were hailing a Kentucky Supreme Court ruling upholding state authority on field of membership powers as providing the banking lobby "a resounding defeat" as part of its ongoing quest to curtail CU expansion.