ST. LOUIS – A month after Missouri Cole County Circuit Court Judge Richard Callahan issued his decision that effectively strikes down the state's credit union field of membership expansion regulation, Missouri credit unions, the Missouri Credit Union Commission and banks all filed petitions with the court concerning the judge's decision. But the CU and banker petitions concerned different issues of the case.

According to the Missouri Credit Union Association, CUs asked for a rehearing of the case, and attorneys for the Commission filed a motion to amend the decision.

Meanwhile, the bankers asked the court to award them $107,000 in attorney's fees.

Since one of the parties requested a motion to amend the decision, the deadline for Judge Callahan to decide whether to change his decision has been extended for 90 days, from April 24 to July 24.

Parties to the case will have 10 days to file an appeal to the Western District Court of Appeals in Kansas City once Judge Callahan announces whether he will amend the case or not.

MCUA President/CEO Rosie Holub stated, “The Missouri Credit Union Association opposes the application for attorney fees filed by the bankers. The Missouri Bankers Association made the decision to file a lawsuit in this case and should be responsible for legal costs associated with its actions.”

On March 24, Judge Callahan announced his decision that the geographic definitions included in the FOM regulation crafted by the commission conflicted with state statute and were therefore invalid.

The 1998 passage of the Credit Union Membership Access Bill in Missouri created the governor-appointed, seven-member commission and charged it with defining terms in the act including “family” and the phrase “local neighborhood, community, or rural district” related to a geographic area.

In announcing his decision, the MCUA said the court overruled the commission's statutory authority.

Last month, the commission directed the state director of the Division of Credit Unions to draft a new regulation “substantially similar” to NCUA's federal credit union expansion regulation.

Instant Insights /

Missouri CUs, Credit Union Commission Petition Court on FOM Expansion Rule Decision, Banks Petition for Attorney's Fees

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