The legislative battle in Ohio over credit unions receivingpublic funds is heating up this month with a House bill introducedlast Friday drawing fire from the banking lobby.

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The Ohio Credit Union League maintains the state's deepeningrecession has triggered a wave of requests from school, townshipand community municipalities approaching CUs for public funddeposits.

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"There are plenty of good reasons for limiting credit unionaccess to government funds when you consider that credit unions arealready subsidized to the tune of $20 million since they pay notaxes," countered Michael Adelman, vice president of stategovernment affairs for the Ohio Bankers League.

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Adelman was commenting on a bill introduced by Rep. TracyMaxwell Heard (D-Columbus), making CUs eligible depositories forgovernment funds, and similar to an unsuccessful CU league attemptin 2004.

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CU officials argue government entities have been seeking out CUsentities as they seek to diversify their deposits because ofconcerns regarding deposit insurance at banks.

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"The credit unions want to serve their communities," said JohnKozlowski, general counsel of the CU league.

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