JEFFERSON CITY, Mo. — Climaxing years of bank/credit union clashing, Gov. Matt Blunt has signed the Field of Membership Law which takes effect Aug. 28 and will require state CUs to follow new guidelines on geographic expansion.

“I think there are at least 10 who are not grandfathered and will now have to resubmit their applications and there are another 10 that have held up their applications not wanting to get sued,” said Betty Clark, chairman of the Missouri Credit Union Association which struck a deal with the banking lobby to get the bill enacted and halt endless bank FOM litigation.

The governor's signature on July 13, “brings finality to the long arduous process we have endured over the past year,” said an MCUA statement.

Under the new law, the 3,000 potential member limit on geographic expansion is removed and the law also eliminates the word “community” to describe FOM in the CU statute. Unclear definitions led to a string of suits brought by the Missouri Bankers Association to block FOM growth.

Under the law, a CU is now “allowed to expand its field of membership to counties contiguous to its main branch,” said Rosie Holub, president/CEO of MCUA.

Clark, who also is president/CEO of United Credit Union of Mexico, Mo. said she was “guardedly optimistic” that the new law will work to bar bank attacks. “But we've been through this before,” she said.