Mo. Code Regs. Ann. tit. 20, § 1100-2.205
Deposit of Public Funds
Effective Aug 28, 2006sections 148.660, 370.070, and 370.071, RSMo 2000 and 370.400, RSMo Supp. 2004* and Section 107 (12 U.S.C. 1757). This rule originally filed as 4 CSR 100-2.205. Emergency rule filed Feb. 14, 1984, effective Feb. 24, 1984, expired June 23, 1984. Original rule filed March 12, 1984, effective June 11, 1984. Amended: Filed Nov. 1, 2004, effective April 30, 2005. Moved to 20 CSR 1100-2.205, effective Aug. 28, 2006. *Original authority: 148.660, RSMo 1982; 370.070, RSMo 1939, amended 1945, 1949, 1951, 1965, 1967, 1972, 1984, 1986, 1994; 370.071, RSMo 1977, amended 1978, 1986, 1991; and 370.400, RSMo 2004Division of Credit Unions
PURPOSE: This rule allows credit unions to accept public funds for deposit (see sections 148.660, 370.070, 370.071 and 370.400 RSMo). (1) All state-chartered credit unions shall have the power to receive deposits from an officer, employee or agent of nonmember units of federal, Indian tribal, state, local governments and political subdivisions, subject to the terms, rates and conditions as may be established by the board of directors.
(2) Political subdivisions and other public entities may invest funds that are not immediately needed for their intended use. For such investments, certain conditions must be met, which include placing the funds in a credit union. The credit union must arrange for the deposit of the funds in certificates of deposit. Each certificate of deposit must be insured by the National Credit Union Share Insurance Fund. The credit union must act as custodian for the public entity with respect to the certificate of deposit. The credit union must receive an equal amount of deposits from customers of other credit unions to that of the public funds initially placed by the public entity. These public funds may be accepted provided the following occur:
- (A) The public funds are invested through a credit union, which has been selected as a depositary of the funds in accordance with the applicable provisions of the statutes of Missouri relating to the selection of depositaries and such credit unions enter into a written agreement with the public entity;
- (B) The selected credit union arranges for the deposit of the public funds in certificates of deposit in one (1) or more credit unions wherever located in the United States, for the account of the public entity;
- (C) Each such certificate of deposit issued by credit unions as provided in subsection (B) of this section is insured by the National Credit Union Share Insurance Fund for one hundred percent (100%) of the principal and accrued interest of the certificate of deposit;
- (D) The selected credit union acts as custodian for the public entity with respect to the certificate of deposit issued for its account; and
- (E) At the same time that the public funds are deposited and the certificates of deposit are issued, the selected credit union receives an amount of deposits from customers of other credit unions equal to the amount of the public funds initially invested by the public entity through the selected credit union.
AUTHORITY: sections 148.660, 370.070, and 370.071, RSMo 2000 and 370.400, RSMo Supp. 2004* and Section 107 (12 U.S.C. 1757). This rule originally filed as 4 CSR 100-2.205. Emergency rule filed Feb. 14, 1984, effective Feb. 24, 1984, expired June 23, 1984. Original rule filed March 12, 1984, effective June 11, 1984. Amended: Filed Nov. 1, 2004, effective April 30, 2005. Moved to 20 CSR 1100-2.205, effective Aug. 28, 2006. *Original authority: 148.660, RSMo 1982; 370.070, RSMo 1939, amended 1945, 1949, 1951, 1965, 1967, 1972, 1984, 1986, 1994; 370.071, RSMo 1977, amended 1978, 1986, 1991; and 370.400, RSMo 2004.