BEAVERTON, Ore. – A credit union public funds bill was signed into law by Oregon Gov. Ted Kulongoski on Monday, removing the current $250,000 limitation on the amount of public fund deposits a credit union can receive.
The CU Association of Oregon, which lobbied for the bill, said the legislation passed through the Oregon House and Senate with a strong bi-partisan vote during a special four-week session in February.
The CUAO said Oregon’s credit unions applauded Gov. Kulongoski for acknowledging, “the value of extending an additional choice for public entities to seek a fair and competitive rate of return on the people’s money.”
Pamela Leavitt, SVP governmental affairs and public relations for the CU Association of Oregon, praised the state’s credit unions for their long-term focus and determination to pass this legislation. “This issue has been worked on since 1981, and is a testament to the movement’s resolve to advance the credit union charter, and to continue seeking new avenues to serve their local communities.”
Public deposits are public funds deposited into a financial institution by the treasurer of any state or local government unit, or any agency of such unit. Increased competition for public deposits arguably produces better rates of return for public entities on all of their investments with financial institutions, the CUAO said.
Approximately 4,000 public agencies in Oregon receive public funds and require the services of financial institutions to house those funds. When the bill goes into effect, credit unions will be among their local options. The bill will be effective on Jan. 1, 2013.
