Members Choice Credit Union v. Home Federal Savings and Loan Association, No. 2008-SC-000877-DG, 2010 WL 2016846 (Ky. May 20, 2010)

Home Federal Savings and Loan Association (Home Federal) filed a petition for declaratory judgment against the Kentucky Department of Financial Institutions (DFI), seeking a declaration that DFI acted outside its authority by chartering credit unions with a geographic field of membership. The court allowed six credit unions to intervene as defendants. Those credit unions were granted permission by DFI to amend their bylaws to allow geographic fields of membership. The circuit court granted summary judgment in favor of Home Federal, and the appeals court affirmed. Nonetheless, the court concluded that a geographic connection is sufficient under the statute. The court thus held that state law allows credit unions to have geographic or community fields of membership.