A credit union public funds bill has been signed into law by Oregon Gov. Ted Kulongoski, removing a $250,000 ceiling on public fund deposits a credit union can hold.

The CU Association of Oregon, which lobbied for the bill, said the legislation passed the Oregon House and Senate on bipartisan votes during a special four-week session in February. The governor signed it Monday.

Pamela Leavitt, a senior vice president at the trade group, said the 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."

About 4,000 public agencies in Oregon receive public funds and require financial institutions to hold the funds. The bill is to take effect Jan. 1, 2013.

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