The New Jersey Senate helped credit unions reach a milestoneThursday when it passed a bill enabling counties, school boards,municipalities and local government entities to use CUs asdepositories. The measure passed 28 - 7.
|While a similar enabling bill is progressing through the House,the New Jersey Credit Union League hailed the Senate adoption as anhistoric achievement for CUs in allowing "choice, competition andthe saving of taxpayer dollars."
|While opponents "had tried to make this a bank vs. credit unionissue," lawmakers saw otherwise, said League CEO Paul Gentile.
|The Senate language had the sponsorship of Senate PresidentSteve Sweeney, Republican Conference Leader Bob Singer and DeputyMajority Leader Paul Sarlo.
|A companion bill introduced by Assemblyman Fred Scalera togetherwith seven co-sponsors is pending consideration in the lowerhouse.
|"This is an important day for credit unions and propertytaxpayers alike," said Gentile. In 2009, the league had spearheadedan effort to correct what is said was an inequity in state law thatrestricts public entities to deposit in FDIC-insured institutions.Of the roughly $15 billion in New Jersey public funds, banks hold$13.7 billion of that amount, the League said.
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