Minnesota credit unions are now designated as approved financial institutions able to redeposit funds from the state’s cities and counties following the signing of a new law by Gov. Mark Dayton.
The Minnesota Credit Union Network hailed the state Senate’s passage last week as a milestone in a long-running campaign to win public funds authority.
Enabling language was contained in a bill which had earlier passed the Minnesota House unanimously.
The public deposits bill, noted MnCUN, was part of an advocacy effort led by the league’s governmental affairs staff to include credit unions as approved financial institutions able to redeposit funds from the state's cities and counties.
"This bill equips credit unions for the future in enabling them to promote products and services associated with accepting these deposits,” said Mark Cummins, MnCUN president/CEO. Several other states also allow credit unions to accept deposits from public entities or else have legislation pending, including California, Illinois, Missouri, New Jersey, New York, Ohio, Wisconsin, Oregon and Washington.
Insurance on individual deposits are limited to $250,000 but there are no limits on the amount credit unions can accept from public entities, the MnCUN said. The network said it worked with bankers to get approval for all financial institutions, including credit unions.