WASHINGTON — The West and New England both have strong traditions of individualism.
Therefore, it may not be surprising that the two credit unions that have chosen to go it alone and not have either public or private deposit insurance are located in Idaho and New Hampshire.
The Boise Fire Department Credit Union, a 934-member, $5 million credit union in Idaho's state capital, is taking advantage of a 1984 state law that mandated all new credit unions to have deposit insurance but allowed existing credit inions to opt out of deposit insurance.
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The 47-member WRG Credit Union in Danville, N.H., has $50,000 in assets. Its treasurer did not return phone calls seeking comment on why it remains without insurance.
Boise Fire Department CU Treasurer Tim Dunn said members never felt the need to add the expense of insurance.
"We're a small credit union, we just have loans and shares. We keep it real simple," said Dunn.
He said members have the chance to vote on whether to buy deposit insurance at every annual meeting.
"We explain the situation thoroughly and answer their questions. Only a few people vote for insurance," he added.
Gavin Gee, director of the Idaho Department of Finance, said the credit union has never been in financial trouble and the state monitors it closely. He also said his department monitors the membership votes.
"They've not caused any problems. They are your basic, small credit union," he said in an interview.
All states require state-chartered credit unions–which make up 39% of all credit unions–to have deposit insurance. Alabama, California, Idaho, Illinois, Indiana, Maryland, Nevada, Texas and Ohio allow credit unions to choose between private insurance or the insurance offered by the NCUA, according to the National Association of State Credit Union Supervisors.
There is one bank that lacks federal insurance–banks can't buy private insurance–the Bank of North Dakota. The bank is owned by the state and used mostly for state deposits and is backed by the full faith and credit of the state, said Assistant Financial Institutions Commissioner Robert Entringer.
At a time when some bank closings in Arizona, California and Nevada have gotten considerable attention, most credit unions are going to great lengths to reassure members and advertise that they are insured.
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