Authorize Credit Unions To Hold Public Money

Under current law, public money may be deposited in or invested with banks and savings and loan associations that are protected by the federal deposit insurance corporation. The bill permits the deposit or investment of public money with a credit union that is federally insured by the national credit union administration. Section 1 of the bill authorizes credit unions to make loans to public entities, and section 2 authorizes the state commissioner of financial services to assess each credit union for the cost of monitoring compliance with laws that protect public deposits. Section 4 renames the "Savings and Loan Association Public Deposit Protection Act" the "Credit Union and Savings and Loan Association Public Deposit Protection Act" (deposit protection act), and sections 5 through 13 add references to credit unions throughout the deposit protection act. Section 15 amends the law allowing public entities to use depositories that are federally insured to include credit unions. Sections 3, 14, and 16 through 24 make conforming amendments to statute to authorize public entities or officials to deposit money with federally insured credit unions and to reflect the renaming of the deposit protection act.

(Note: This summary applies to this bill as introduced.)