Regulatory Alerts2009-12-23 | I-09-04DCU Interpretive Letter I-09-04: Credit Union Eligibility for Government Sub-grant Funds
The Washington Department of Financial Institutions clarifies that state-chartered credit unions may accept sub-grants from the State Energy Program despite being prohibited from holding public deposits. While credit unions cannot serve as interim depositaries for undistributed federal funds, they are eligible recipients once those funds are fully disbursed and cease to be classified as public funds. This guidance ensures compliance with the Public Deposit Protection Act while allowing credit unions to participate in energy efficiency credit enhancement initiatives.
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