Bill Allows NJ CUs To Accept Municipal Deposits
TRENTON, N.J. – New Jersey’s credit unions now are permitted to act as depositories for public funds following Gov. Chris Christie’s signature on legislation making those deposits permissible.
The legislation allows counties, school boards, municipalities and other local government entities access to CUs. Previously, credit unions in the Garden State had been prohibited by the Governmental Unit Deposit Protection Act, which mandates depositories have FDIC insurance.
The public deposit market in New Jersey is approximately $15 billion. The legislation had the backing of the New Jersey CU league.