Five credit unions in Oregon are well on their way to accepting and safely holding large government fund deposits.
The $916 million Unitus Community Credit Union of Portland, $146 million Pacific Crest Federal Credit Union of Klamath Falls, $777 million O.S.U. Federal Credit Union of Corvallis, $3.2 billion OnPoint Community Credit Union of Portland and $928 million Advantis Credit Union of Milwaukie submitted the required notice and paperwork to participate in the Oregon Credit Union Public Funds Collateralization Program, the Oregon State Treasury said in an announcement.
The program, slated to take effect April 1, 2013, will allow Oregon credit unions to take public deposits in excess of the current FDIC-insured limit of $250,000 per depositor. Those deposits will be protected through collateral, the Oregon State Treasury said.
Legislation for the new program was passed in 2010 and clarified in 2011. In order for the program to launch, a minimum of five credit unions had to submit required materials, which include letters from government entities promising to make deposits above $250,000.
Officials from the cities of Portland, Beaverton, Corvallis, Independence and Klamath Falls provided the pledge letters for the five credit unions.
According to the Northwest Credit Union Association, five additional Oregon credit unions plan to participate in the program after it takes effect next year: the $453 million Marion and Polk Schools Credit Union of Salem, the $723 million Northwest Community Credit Union of Springfield, the $115.8 million Old West Federal Credit Union of John Day, the $145 million Wauna Federal Credit Union of Clatskanie and the $1 billion Oregon Community Credit Union of Eugene.
Oregon State Treasurer Ted Wheeler said the program offers government entities in Oregon an additional option while choosing where to store their funds.
“I want to thank community leaders, legislators and credit unions who have worked long and hard to create this new avenue for state and local deposits,” Wheeler said. “Oregon governments of all sizes now will have the ability to deposit public money in many of our fine community credit unions with the appropriate safeguards.”