At a time when it's difficult to convert deposits to loans, does it make sense to open the door to an additional flow of money into a credit union?

That's one of the questions surrounding the acceptance of deposits of public funds. While federally-chartered credit unions can offer such accounts, a tally by the League of Southeastern Credit Unions found that in 17 states the transactions are still forbidden to those with state charters. Efforts are underway to change that in states such as Alabama, Florida and Ohio. In New Jersey and Oregon, campaigns have succeeded with efforts continuing to clear up the details.

In one sense, credit unions do have mixed feelings on adding another source of deposits, said LSCU CEO Patrick La Pine said. Others who are seeing weak loan demand may be chasing away deposits. Then there are credit unions who view government accounts as a chance to further strengthen relationships. For example, a credit union serving educators may welcome the ability to accept funds from local school districts.