Monday, August 22, 2011 11:24:00 AM
TRENTON, N.J. - Governor Christie has signed legislation sponsored by Senate President Sweeney, Senator Singer, Speaker Oliver, Deputy Speakers Chivukula and Wisniewski, and fifteen other legislators that paves the way for public entities to seek out the best possible return for taxpayer dollars by allowing New Jersey's credit unions to serve as eligible public depositories.
The legislation (S-1807) that enables counties, school boards, municipalities, and other local government entities to use credit unions as depositories was signed into law late Friday afternoon.
New Jersey's credit unions will soon be able compete with banks in the $15 billion public deposit market and public entities will have a new option to consider as they seek out the best yield in these tough economic times.
"Credit unions will bring new competition to public deposits that will likely drive better returns and ultimately help taxpayers," said NJCUL President/CEO Paul Gentile. "Defeating the bill was the bankers' top legislative priority," he continued. "Our members pulled together in true credit union form to communicate the widespread support for giving local governments every possible tool to save property taxpayer dollars. Their help was invaluable in getting the reform enacted," Gentile concluded.
The legislation was supported by the New Jersey Credit Union League, the NJ League of Municipalities, the NJ School Boards Association, and the NJ Association of Counties.
"I am thrilled that our association was able to spearhead legislation that empowers New Jersey credit unions to add to their business line while also potentially helping taxpayers. In a time when regulators and lawmakers seem to be clamping down on financial service providers including credit unions, this is a proactive step in the right direction," said NJCUL Chairman and McGraw-Hill FCU President/CEO Shawn Gilfedder.
While the legislation is effective immediately, it will take a few months for the NJ Department of Banking & Insurance to adopt rules and make the necessary system adjustments for implementation.