TINTON FALLS, N.J. (1/6/14)--United Teletech Financial FCU, Tinton Falls, N.J., is the fifth credit union in New Jersey to secure eligibility to receive municipal deposits.
After filing its Governmental Unit Depository Protection Act (GUDPA) application, the credit union received its official notification of eligibility Nov. 25.
"This is a big deal and allows UTF to bid for the deposits of various public entities as they receive funding at the beginning of the year," Leo R. Ardine, president/CEO of $322 million-asset UTF FCU, told the New Jersey Credit Union League (Daily Exchange Jan. 3).
UTF FCU will be included on the list of eligible depositories for local government entities, municipalities and school districts in New Jersey's Monmouth, Middlesex and Ocean counties.
The league helped pass legislation in 2011 to allow credit unions to enter the $15 billion municipal depository market.
In Ohio, the Ohio Credit Union League and credit unions are urging state lawmakers to pass legislation that would allow credit unions to accept municipal deposits (News Now Dec. 30).
Other states that have laws on the books or are considering legislation to allow credit unions to accept public deposits include California, Illinois, Missouri, New York, Oregon and Washington.