A county can be a member of and sponsor of a CU and could use public funds to start one, according to a legal opinion by NCUA Deputy General Counsel Michael McKenna.
He noted that a county government, "depending on an FCU's field of membership, could join an FCU and could be a sponsor, assisting in an FCU's organization and operation." Also, sponsoring organizations can provide help with staffing and office space.
McKenna noted, however, that once the federal CU is chartered it is an independent legal entity separate from any sponsor or any organization whose members constitute the credit union's membership.
