SB 292 Summary

• Permits credit unions and farm credit system institutions to serve as public depositories for state and local government funds, subject to the same deposit limits and security requirements as traditional banks.

• Allows credit unions and farm credit system institutions to participate in the Capital Access Loan Program and Small Business Loan Guarantee Program, expanding lending opportunities for small businesses.

• Requires deposits in credit unions and farm credit system institutions to be fully insured by the National Credit Union Administration, a share guaranty corporation, or the Farm Credit System Insurance Corporation.

• Establishes restrictions preventing officers and employees of state agencies from depositing public funds in credit unions or farm credit institutions unless conditions are met, including proper insurance and security pledges.

• Applies security deposit and collateral pledging requirements to credit unions and farm credit institutions equivalent to those required of banks serving as public depositories.