MS SB2863

Allows United States Treasury-certified Community Development Financial Institution Fund Credit Unions with National Credit Union Administration insurance to qualify as public funds depositories for state, county, and municipal deposits.

Requires qualifying credit unions to meet the same capital ratio requirements (5.5% for standard depositories, 6.5% for guaranty pool members) and collateral pledging requirements as FDIC-insured financial institutions.

Permits credit unions to receive public funds from counties, municipalities, and other local governmental units, subject to the same security and reporting requirements as traditional banks.

Extends existing depository selection procedures, bidding processes, and collateral requirements to include eligible credit unions alongside FDIC-insured institutions.

Effective July 1, 2020.