A Kentucky credit union appeared to write a new chapter Tuesdayon NCUA vs. state policies on communitycharters.

In the first conversion of its kind in the state in 30 years,the $83 million Autotruck FCU has shed its federal charter and saidit can now take advantage of more lenient field of membershipregulations governing designated “area development districts”within the state.

The move by the Louisville credit union – which three daysbefore Christmas officially changed its name to Autotruck FinancialCU – will give the SEG-based CU expansion muscle to add new membersin Bowling Green, said Huston Reinle, president/CEO.

Autotruck Financial has 13,000 members and a branch in BowlingGreen – home to the Corvette assembly plant and Holley PerformanceProducts – but NCUA examiners had previously denied a bid for acommunity charter based on the 120-mile distance from Louisville,Reinle said.

In a formal statement issued Tuesday, Autotruck Financial calledits new authority “an important milestone in our 51-year history inproviding more products, service and convenience” to Bowling Greenmembers.

The state's chief regulator, Charles Vice, commissioner offinancial institutions, said the Autotruck conversion might lead tomore.

“We've heard from a few looking at it now,” he said.

Vice said in a press release that Autotruck's “desire to switchto state regulation is a testament to the strength of the statecharter and DFI's positive role as a regulator.”

The Kentucky Department of Financial Institutions, Vice said,“believes that a state charter provides significant value due tothe local decision-making process and our knowledge of localeconomic conditions.”

AFCU's board voted in June to begin the process. The conversionwas officially completed on Nov. 8 and the charter delivered onDec. 22.

Reinle, who also is chairman of the Kentucky Credit Union League, said his credit union is linkedto the automotive industry, including northern Kentucky Fordplants, but can now start reaching out to new members in anexpanded 17-county FOM.

“It's been a rather tough couple of years for credit unions likeours … but this will help change” credit union fortunes, forecastReinle.

The conversion is the first of its kind since a 2010 KentuckySupreme Court ruling turned aside a bank-sponsored challenge to DFIcommunity charter powers.

The NCUA had no immediate comment on Tuesday.