Minnesota credit unions are now designated as approved financialinstitutions able to redeposit funds from the state's cities andcounties following the signing of a new law by Gov. MarkDayton.

The Minnesota Credit Union Network hailed the state Senate'spassage last week as a milestone in a long-running campaign to winpublic funds authority.

Enabling language was contained in a bill which had earlierpassed the Minnesota House unanimously.

The public deposits bill, noted MnCUN, was part of an advocacyeffort led by the league's governmental affairs staff to includecredit unions as approved financial institutions able to redepositfunds from the state's cities and counties.

“This bill equips credit unions for the future in enabling themto promote products and services associated with accepting thesedeposits,” said Mark Cummins, MnCUN president/CEO. Several otherstates also allow credit unions to accept deposits from publicentities or else have legislation pending, including California,Illinois, Missouri, New Jersey, New York, Ohio, Wisconsin, Oregon and Washington.

Insurance on individual deposits are limited to $250,000 butthere are no limits on the amount credit unions can accept frompublic entities, the MnCUN said. The network said it worked withbankers to get approval for all financial institutions, includingcredit unions.