JEFFERSON CITY, Mo. — Governor Matt Blunt has signed into law the much-fought Field of Membership bill climaxing years of bank/credit union clashing.
The bill, which takes effect Aug. 28, requires 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 perhaps 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.
Recommended For You
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 is "guardedly optimistic" that the new law will work to bar bank attacks. "But we've been through this before," she said.
Her own CU has no plans to seek branches, but some of the state's largest CUs are ready to pursue delayed expansion under the law.
"It is a relief that this bill passed and we've been trying for a long time to get on with our growth," said Clark.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
