Missouri Appeals Court Upholds Lower Court's FOM Decision for Credit Unions

JEFFERSON CITY, Mo. – In another win for state-chartered credit unions, the Missouri Court of Appeals Western District affirmed the decision of Cole County Circuit Court denying the Missouri Bankers Association and a Century Bank of the Ozarks standing to appeal Missouri Division of Credit Unions Director John Smith's field-of-membership expansion decision in October 2000 for Telcomm CU. "I hope this latest ruling will settle the matter and allow credit unions to serve the citizens of this state unfettered by judicial proceedings," said Smith in a statement. Telcomm CU did business as Springfield Telephone Employees CU in 2000 when the CU filed its application with the Division of Credit Unions in July to expand its FOM to include people who live or work in the 417 or 573 area codes. Smith approved the expansion for the 417 area code, but not the 573. In November, the MBA and Century Bank of the Ozarks filed an appeal of Smith's decision with the seven member Credit Union Commission, and in May 2001, the Commission upheld Smith's decision. In September, the bankers filed a petition for administrative review with the Cole County Circuit Court. In January 2002, the Court ruled the bankers lacked standing. In May, the bankers took their case to the Western Appelate Court.