Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Alabama bills make CUs eligible for municipal deposits
BIRMINGHAM, Ala. (2/23/12)--Alabama credit unions would be eligible to accept municipal deposits under a bill recently introduced to the Alabama legislature.

The bill, sponsored by the League of Southeastern Credit Unions (LSCU), was originally referred to the state House Financial Services Committee and to the Senate Governmental Affairs Committee.

The Senate bill has been re-assigned to the Senate Banking and Insurance Committee, an effort on the part of the banks to fight the bill, according to LSCU.

"[Banks] felt moving the bill to that committee presented them with their best chance to defeat the measure," said Jason Cochran, LSCU director of legislative affairs.

Commercial banks maintain that credit unions should not serve local government because of they do not pay taxes, the league noted in a bulletin urging state credit unions to contact members of the state legislature. Credit unions do pay tangible personal property taxes, real property taxes, and as employers, credit unions pay all employment taxes, according to the league. Credit unions' tax status lies in their not-for-profit structure, including cooperative ownership and volunteer leadership, the league maintains.

"Our tax status and whether or not credit unions can accept municipal deposits … obviously those are dots that we feel cannot be connected," Cochran said.

Municipalities could receive better rates of return on their tax dollars if they were allowed to deposit public funds in credit unions, which on average, pay out 0.25 to 0.50 basis points more than banks on deposit accounts, according to the league.


RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
6 hours ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
11 hours ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
11 hours ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
13 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
13 hours ago