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N.J. governor signs deposit law including CUs
TRENTON, N.J. (11/25/09)--New Jersey Gov. Jon Corzine signed legislation that extends the range of investments for state of New Jersey Cash Management Fund and State Pension Fund monies to credit unions.
The New Jersey Credit Union League lobbied to include credit unions in the legislation to make additional lending capacity available to local financial institutions and spur economic development (The Daily Exchange Nov. 23).
The bill extends for up to one year the range of investment vehicles in which the state's director of the Division of Investment may invest state monies that are intended for investment in fixed income, debt securities and non-convertible preferred stock.
The bill authorizes the director to invest such monies in any issue of obligation provided that the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Share Insurance Fund guarantees the obligation.
"This is the first time credit union share insurance has been given parity with FDIC coverage in New Jersey law," said league President/CEO Paul Gentile. "It's a significant step forward and will help our efforts to enable credit unions to become eligible depositories for municipalities, school boards and counties," he concluded.
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