Missouri Cole County Circuit Court Hears FOM Case - Again

JEFFERSON CITY, Mo. – Missouri credit unions had their day in Cole County Circuit Court for the second time and the opportunity to present testimony supporting their argument that the Missouri Credit Union Commission correctly interpreted the state's 1998 field-of-membership statute. Judge Richard Callahan heard testimony May 18 from credit unions in their motion for partial summary judgment on the question. The judge also heard testimony from banker attorneys during the 90-minute debate. In addition, credit unions filed a motion May 19 asking Judge Callahan to rule that the CU Commission's FOM rules are valid. According to the Missouri Credit Union Association, the judge's questions to both credit union and bank attorneys focused on the definition of field-of-membership and definitions regarding "local neighborhood, community or rural district." Judge Callahan also asked the attorneys for a memo on the phrase "regulations.no less restrictive than those applicable to federally chartered credit unions." The case dates back to September 2001 when the Cole County Circuit Court ruled that bankers didn't have standing to appeal the Commission's FOM decisions. The bankers filed an appeal with the Western District Appeals Court which ruled for the bankers and sent the case back to the Cole County Court in March 2004. Missouri Credit Union Association Director of Communications Larry Deutsch said "all the details since then have been jockeying over what will and won't be heard." Deutsch said Judge Callahan did not set a deadline on the receipt of memos from both the CU and banker sides and gave no indication when a decision will be made on the CUs' motion. Consequently there has been no time frame set for the resumption of the case. "This motion is an effort to move the case forward a little more quickly than it's been progressing to this point," says MCUA SVP of Public and Legislative Affairs Peggy Nalls. "If the judge finds in favor of credit unions, it could prevent a discussion in the court on whether or not the rule is valid. If the judge finds against credit unions, it means that more time will be needed to discuss whether or not the Commission was within its statutory authority when the rules were first promulgated." -