In apparent fallout from Bank Transfer Day furor, Seattle CityCouncil is exploring moving its public funds from banks to creditunions, though such future transactions would require clearing somelegal hurdles.

In a 12-part resolution adopted last Monday, the council said it“will review its banking and investment practices to ensure thatpublic funds are invested in responsible financial institutionsthat support our community.”

The resolution was sponsored by Councilmen Nick Licata and MikeO'Brien, both of whom reportedly announced on Bank Transfer Day that they were joiningcredit unions.

The Northwest Credit Union Association said that while itwelcomed the resolution the state legislature would still have toenact a bill allowing CUs to hold funds at depositinsurance levels.

Based on the roadblocks and other factors, no Seattle CU hascome forward so far in pressing the case to start accepting thefunds, said Mark Minickiello, vice president of legislative affairsfor the NWCUA.

Minickiello said, however, the resolution does “presentopportunities for partnership on common issues before the statelegislature in 2012.”

“The resolution ties the city of Seattle to issues of publicfunds and member business lending – two issues that credit unionshave an interest in,” he said.