New Jersey State Sen. Bob Singer (R) discussed municipal deposits in credit unions at Tuesday's South-Central Chapter of Credit Unions meeting. (Photo provided by the New Jersey Credit Union League)
EATONTOWN, N.J. (3/19/12)--New Jersey State Sen. Bob Singer told a group of credit unions last week that allowing credit unions to receive municipal deposits was the "right thing to do."
Singer, a Republican who spoke Tuesday at the South-Central Chapter of Credit Unions, played a major role in passing state legislation that allows credit unions to enter the $14 billion municipal deposits market, said the New Jersey Credit Union League (The Daily Exchange
"What we did for credit unions last year was the right thing to do," Singer told the group. "Hopefully credit unions can drive more competition and ultimately help taxpayers."
His key point to credit unions was to make sure they get themselves listed as an eligible depository with local public entities. "You should do it at the organizational meeting, but if they tell you they can't add you later, they are wrong. They can add you later," he said.
Singer noted that credit unions should be strategic in evaluating public funds opportunities and understand what they're getting into. Many municipalities have policies to put some public funds with any institutions based within their borders, so credit unions should be particularly active in their own municipalities, he advised.
New Jersey recently passed a law enabling the state's municipalities to make public funds deposits into credit unions. The measure was supported by the league.