MS SB2635

Allows United States Treasury-certified Community Development Financial Institutions Fund Credit Unions (CDFIs) with National Credit Union Administration insurance to qualify as public funds depositories alongside FDIC-insured banks.

Requires CDFI credit unions to meet the same primary capital to total assets ratio requirements (5.5% or 6.5%) and collateral pledge standards as banks to qualify as state, county, or municipal depositories.

Permits counties, municipalities, and other local governmental units to deposit public funds in qualified CDFI credit unions subject to the same security and reporting requirements as traditional bank depositories.

Applies these provisions to county depositories, municipal depositories, and state public funds depositories with identical qualification and operational standards.

Takes effect July 1, 2021.