FRANKFORT, Ky. — A Franklin County Circuit Court judge has set July 12 for oral arguments on a year-old suit brought by the Kentucky Bankers Association challenging credit union field of membership and common bond powers for “community based” CUs.

Judge Phillip Shepherd's order follows a flurry of petitions and motions on Monday including an amicus brief from the Kentucky Credit Union League upholding the state's FOM authority. This action came in response to a May 2006 petition filed by an Ashland savings & loan against the state CU regulator to halt FOM expansion by a group of six Kentucky CUs.

The case centers on an interpretation of “general interest” definitions in the state's CU common bond law with the bankers arguing federal FOM statutes take precedence over the state's 50-year-old law governing community charters.

The league has vowed to quash the bankers' suit seeking a summary judgment against the Kentucky Office of Financial Institutions, which filed its own brief on Monday. Intervenor petitions were also filed by the six CUs including Members Choice, C & O United, Service One, Beacon, GTKY and Kentucky Employees.

The league's amicus petition maintains the plaintiff is trying to “foist the mantle of federal credit union membership” on state CUs.