N.M. governor announces plan for CUs in rural areas

New Mexico Gov. Bill Richardson, surrounded by local dignitaries, announced the state's plan to help support credit unions and banks in rural, underserved areas at an event in Vaughn, N.M., a town of 500. At the event, Everyone's CU announced it would open a branch in Vaughn. Earlier a bank had closed its branch there. (Photo provided by the Credit Union Association of New Mexico)

VAUGHN, N.M. (10/27/06)--New Mexico Gov. Bill Richardson formally announced his plan for the state to help support financial institutions in underserved areas.

The announcement came as Tucumcari-based Everyone's CU said it would open a branch in Vaughn in December (Associated Press Oct. 24).

The $13 million asset credit union stepped up to help the small community after Wells Fargo announced it was closed its branches in Vaughn, Roy and Wagon Mound--leaving those towns without a financial services provider.

Richardson's plan allows the state treasury to put up to 14% of state deposits--or $50 million--in financial institutions located in small, financially at-risk communities. Twenty-five communities have been identified as such.

The linked-deposit program lets the Treasurer's Office accept a rate of return on those deposits at one percentage point below the market rate. It also provides operating capital to credit unions or banks in communities with less than 1,000 people, a declining population or a median household income less than 80% of the state level.

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