ALEXANDRIA, Va.-Federal credit unions are permitted to acceptpublic unit deposits within regulatory limits as part of the“BidAllegheny Program” in Pennsylvania, a recent NCUA legal opinionletter (03-1011) read. Allegheny County Treasurer John K. Weinsteinrecently wrote NCUA asking if federal credit unions couldparticipate in the online auction program for general funds to beplaced in certificates of deposit or share certificates.Approximately $250 million has been placed in this manner. Thecounty is considering broadening the type and location of financialinstitutions invited to participate, including credit unionslocated in Western Pennsylvania. “An FCU may accept public unit andnonmember shares up to 20% of its total shares or $1.5 million,whichever is greater, and may exceed these limits with NCUA'sapproval,” NCUA Associate General Counsel Sheila Albin wrote. “FCUsthat qualify under NCUA's Regulatory Flexibility Program are notsubject to any limit on investment in public unit deposits.” Sheadded that state law dictates whether federally insured, statechartered credit unions are allowed to participate.

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