NCUA: CUSO May Use CU's Routing Number
NCUA said last week a federal credit union can use its status as a federally insured depository to obtain a routing and transfer number from the Federal Reserve for use by an affiliated CUSO providing item processing for other credit unions. In a legal opinion issued to US FCU, part owner of Minnesota Item Processing Corp., NCUA said the CU may serve as a conduit to the Fed's routing and transfer system for the CUSO, as long as the CUSO is a member of the credit union. NCUA also cleared the way for the CUSO to provide collection, or deposit, item processing services. The CUSO is owned by 20 area credit unions and provides item and image processing for 100 Minnesota CUs.