CDs issued to non-member municipalities are insured by the NCUSIF on a pass-through basis, according to a legal opinion letter by NCUA Associate General Counsel Sheila Albin.

Those certificates of deposits would have to be invested through a third-party service, similar to the Certificate of Account Registry Service, which works with FDIC-insured banks.

"Although, generally, NCUSIF coverage only extends to member accounts, federal credit unions, and we believe most state-chartered credit unions, may accept funds from public units or government depositors without regard to membership," Albin wrote.

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