Bill Would Allow Local Funds to Be Saved With Local Institutions
TRENTON – The Senate Commerce Committee has released legislation Senate President Stephen M. Sweeney sponsored to allow New Jersey’s credit unions to become official depositories for municipal governments, school boards and other public entities.
There are more than 225 credit union locations across the state. Under current law, only banks insured by the Federal Deposit Insurance Corporation may be public depositories.
“Credit unions are safe, reliable and responsible and have a mission of serving their communities,” said Sweeney (D-Gloucester/Cumberland/Salem). “Governments should have the ability to invest public funds with local institutions that are part of the community. Given the non-profit missions of New Jersey’s credit unions, leaving them out of the picture makes no sense.”
Under the measure (S-1807), any credit union insured by the National Credit Union Administration would be authorized to house government funds as a qualified public depository. Out-of-state credit unions that have a branch office in New Jersey similarly could take government deposits – just like New Jersey branches of nationally chartered banks.
“Thousands of New Jersey families have chosen to entrust their savings to credit unions – local governments should have that same option,” said Sweeney.
The measure is cosponsored by Sen. Robert Singer (R-Ocean).