The first-ever Oregon Credit Union Public Funds Collateralization program launched Monday, allowing qualified credit unions in the state to accept public funds deposits that exceed federal insurance limits, according to the Northwest Credit Union Association.
Prior to the program's launch, only banks could accept public deposits beyond the $250,000 insurance limit. The new program gives governments additional options for depositing public funds, assuring that taxpayer money is safe even if a financial institution fails.
Though the NCUA insures deposits of up to $250,000, the Oregon Credit Union Public Fund Collateralization program insures deposits of more than $250,000 with securities as collateral. In the event of a loss, the state can recover public funds by selling the collateral.
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