If you're knowlegable re banking/credit union regs: what are the implications of this rule change?

[Hannah Bell]

(Washington State):

2009 House Bill 1669 (Addressing the deposit of public funds)


•Introduced by Rep. Sam Hunt, (D-Olympia) (D) on January 27, 2009, Allows the deposit of public funds into credit unions. (See also Companion SB 5579) .
◦Referred to the House Financal Institutions & Insurance Committee on January 27, 2009.

■Substitute offered in the House on February 17, 2009, to require that credit unions approved as public depositaries must at all times pledge and segregate eligible securities in an amount equal to 100 percent of all public funds on deposit in the public depositary. The "maximum liability" in reference to a credit union public depositary means on any given date a sum equal to 100 percent of all collateral posted to secure the public deposits. An effective date of January 1, 2010, is added. The substitute passed in the House by voice vote on February 17, 2009.
◦Referred to the House Rules Committee on February 19, 2009.

■Amendment offered in the House on March 9, 2009, to limit credit union depositaries from accepting public deposits in excess of their insured amount. The amendment passed in the House by voice vote on March 9, 2009.