The Oregon Treasury says five credit unions have applied to hold large sums of government money. It’s part of an effort to keep Oregon money in Oregon.
About 37 banks are qualified as public fund depositories in Oregon. They hold almost $1.4 billion. The funds come from state government, cities, school districts and even water districts.
But most participating banks are large and not based in state. And until now, small local credit unions have been unable to take large government sums — because they could only insure the first $250,000 of any deposit.
Now the legislature has established a program to protect public deposits.
Treasury spokesman, James Sinks, says the number of credit unions taking part is expected to grow.
“We’ve been told by the Credit Union Assocation that the number of credit unions that will participate will increase to 10 in April when this becomes effective. We’ve also heard that there are other credit unions that are actively investigating this possiblity.”
Five city governments have pledged so far to put money in credit unions — Portland, Beaverton, Corvallis, Independence, and Klamath Falls.