KY SB87

Authorizes state and federally chartered credit unions with a physical presence in Kentucky to serve as state depositories for public funds, placing them on equal footing with banks and savings and loan institutions

Allows local governments (cities, counties, school districts, political subdivisions) to invest public funds in certificates of deposit and interest-bearing accounts at credit unions, provided deposits are insured by the National Credit Union Administration or properly collateralized

Permits credit unions to participate in repurchase agreements for local government investments in U.S. obligations and to bid on local government deposits before funds are placed in investment pools

Requires credit unions serving as state depositories to meet the same collateral and capital requirements as banks, including pledging securities or surety bonds equal to at least 100% (or 80% for reduced pledging option) of uninsured deposits

Amends multiple Kentucky Revised Statutes (KRS 66.480, 41.010, 41.070, 41.220, 41.240, 30A.120, 30A.200) to add "credit union" alongside "bank" and "savings and loan" throughout state financial services law