The DFI Issued Bulletin on Wash. State Credit Unions as Qualified Public Depositaries

The Washington State Department of Financial Institutions Division of Credit Unions (DFI) recently issued a bulletin on Washington State credit unions acting as qualified public depositaries.  The information in the bulletin also applies to federally chartered credit unions accepting public funds from state or political subdivisions.  Credit unions may hold up to $250,000 in deposits per public depositor.

Before a credit union can accept a state or its political subdivision public fund, it must apply to the Office of the State Treasurer and become a qualified public depositary. For information about the application process and monthly reporting, please contact Nancy Adams, administrator of the State Treasurer’s Office, at nancy.adams@tre.wa.gov or 360.902.9077. The credit union will need to request a Certificate of Authority from the Division of Credit Unions (NCUA for federal credit unions) and attach it to the State Treasurer’s application.  A sample application letter is available in the resource section of InfoSight.

For a list of credit unions approved as qualified public depositaries, see http://www.tre.wa.gov/documents/pdpc/publicDepositoriesCreditUnions.shtml.

Approved credit unions will be required to complete a monthly online report to the State Treasurer’s Office that will include:

  • Type of public fund (e.g. city, county, school)
  • Name of public deposit (e.g. City of Bellingham, Pierce County)
  • Department (e.g. Fire District, Water District)
  • Account type (e.g. savings, CD, checking)
  • Balance

Qualified credit unions that choose to accept public deposits will need to remember that both 12 CFR 741.204 and 12 CFR 701.32 will apply. These rules restrict such deposits to no more than twenty (20) percent of total shares/deposits or $1.5 million, whichever is greater. These deposits are also reported on lines 18 and 19 on page 3 of the 5300 report. The public depositors need not be members of the credit union. However, the official custodian should sign the credit union’s account agreements.

Questions about this program may be directed to Linda Jekel, director of credit unions at Linda.Jekel@dfi.wa.gov or 360.902.8778 or Nancy Adams, administrator of the State Treasurer’s Office at nancy.adams@tre.wa.gov or 360.902.9077.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.