TRENTON, N.J. (11/14/12)--Credit Union of New Jersey in Ewing is the first credit union in the state to secure eligibility as a municipal depository, according to the New Jersey Credit Union League.
The credit union filed its Governmental Unit Depository Protection Act (GUDPA) application Oct. 10 and received its official Notification of Eligibility Friday (The Daily Exchange Nov. 13).
League-backed legislation was enacted in 2011 and implementation rules were published in September to allow credit unions to enter the $15 billion market.
New Jersey credit unions can apply to be included on the list of eligible depositories for the state's more than 1,400 local government entities, including 21 counties, 566 municipalities and 611 school districts. The approval process takes about a month, said the league.
Most local government entities approve depositories for the coming year at their annual reorganization meeting in early January.
The league encouraged interested credit unions to file a GUDPA application early so that they can be included among potential public depositories.
Momentum has been building in several states to include credit unions as public depositories. States that have have been successful in recent years include Oregon, Washington and New Jersey. Minnesota and Wisconsin were successful in getting credit unions included in CDARS-type (Certificate of Deposit Account Registry Service) programs.
Also, several cities are adopting Responsible Banking Ordinances, which would provide credit unions more opportunities to accept municipal deposits (News Now June 29). San Diego adopted an ordinance in September. The Northwest Credit Union Association helped get an ordinance passed in Portland, Ore.