Removing Barriers Blog

Ohio Budget Bill with Credit Union Provisions Signed
Posted July 07,2017 by CUNA Advocacy

Last week, an Ohio League-championed budget bill that includes several provisions that would impact credit unions, including public deposits, a Good Funds correction and remote notarization was signed by Governor Kasich.  

The budget bill grants credit unions access to Ohio’s public deposit programs, Business Link and Ag-Link.  These programs provide cost savings to member businesses and create parity with bank authority. Both credit unions and banks may be levied an assessment for each loan per the Treasurer of State’s discretion. Credit unions cannot begin to promote or apply for linked deposits until the rules are in place and the League is working with the regulator to ensure a fair and swift rule-making process.

The budget bill also includes a correction to Ohio’s Good Funds provision. During lame-duck session last year, an amendment was included in an omnibus bill that placed a monetary cap of $1,000 on the use of certified and cashier’s checks during a real estate settlement. Further, the amendment was written so that a wire transfer would be the only acceptable financial instrument to move money from an escrow account. Under the budget bill, credit unions will be able to once again issue and accept “good funds” via cashier’s or certified check without being required to pay wire fees for amounts totaling over $1,000. This provides flexibility and cost savings to credit unions and members.

The state budget also allows for remote notarization. Language included permits any financial institution to establish or contract with a vendor to implement technology that would allow remote notarization across the entire real estate settlement process. Thus credit unions are now able to leverage technology to notarize documents in a more efficient, convenient, and cost-effective manner for the member.