A bill to allow New Jersey credit unions for the first time to become eligible public depositories for public funds successfully passed the Senate Commerce Committee Thursday on a 3-1 vote with one abstention.
In hailing passage of the bill, which still must go to the full Senate, the league said it was heartened at newfound support among lawmakers for providing CUs funds authority.
"This is something we've been working hard at for 18 months," said Paul Gentile, president/CEO.
The league last year had spearheaded to correct what it said is an inequity in state law that only allows public entities to deposit in FDIC-insured institutions. "This was a major step forward for us today," said Gentile. "I am so happy for our credit unions that our message is being heard. There is no reason credit unions should not be allowed to accept public deposits."
There are roughly $15 billion in New Jersey public funds with banks holding $13.7 billion of that amount.