OLYMPIA, Wash. – State chartered credit unions interested in accepting municipal deposits under the state’s new law must first apply to the Office of the State Treasurer and become a qualified public depositary, credit union regulators said last week.
Beginning July 1, Washington state government and its political subdivisions are permitted to deposit public funds in qualified Washington chartered credit unions. Those deposits must be $100,000 or less per depositor.
Among the entities that may make credit union deposits are counties and cities, but also drainage, irrigation, navigation improvement, levee, sanitation, school or power districts. They also may include bridge or port authorities and other special districts created by statute or compacts between the states. The public depositors need not be members of the credit union. However, the official custodian should sign the credit union’s account agreements.
Approved credit unions will be required to complete a monthly online report to the State Treasurer’s Office that will include: type of public fund (city, county, school), name of public deposit (city of Bellingham, King County), department (fire district, water district,) account type (savings, CD, checking), and balance (dollar amount).
The new rules restrict municipal deposits to no more than 20% of total shares/deposits or $1.5 million, whichever is greater.
