Brad Cromes   on Tuesday 04/06/2021 at 04:08 PM

Please correct me if I'm wrong, but I didn't think credit unions were eligible as depositories (except for in very narrow circumstances, i.e. support of the AG-Link program through the TOS).

Provided they are an option, though, I think the obvious "pro" is that they allow you to keep funds more local and to directly support your community effectively. The "con" is that they are a slightly less secure vehicle (and while failures are rare and few, they do happen). They also tend to have smaller overall deposits, which gives you a smaller cap on what you can keep with them. I we were to utilize one of those institutions, I'd probably start small.

Jeff McIntosh   on Friday 04/09/2021 at 12:28 PM

This is how it was explained to me when I inquired about it......
It is not written in plain text. It is inferred. So because credit unions are not eligible public depositories, you cannot place CD’s with them



From Ohio Compliance Supplement Manual:

Ohio Rev. Code § 135.03 effectively excludes credit unions from eligible depositories as it does not name them in its list of institutions that may be public depositories.





ORC 135.03

Any national bank, any bank doing business under authority granted by the superintendent of financial institutions, or any bank doing business under authority granted by the regulatory authority of another state of the United States, located in this state, is eligible to become a public depository, subject to sections 135.01 to 135.21 of the Revised Code. No bank shall receive or have on deposit at any one time public moneys, including public moneys as defined in section 135.31 of the Revised Code, in an aggregate amount in excess of thirty per cent of its total assets, as shown in its latest report to the comptroller of the currency, the superintendent of financial institutions, the federal deposit insurance corporation, or the board of governors of the federal reserve system.

Any federal savings association or any savings and loan association or savings bank doing business under authority granted by the regulatory authority of another state of the United States, located in this state, and authorized to accept deposits is eligible to become a public depository, subject to sections 135.01 to 135.21 of the Revised Code. No savings association, savings and loan association, or savings bank shall receive or have on deposit at any one time public moneys, including public moneys as defined in section 135.31 of the Revised Code, in an aggregate amount in excess of thirty per cent of its total assets, as shown in its latest report to the former office of thrift supervision, the comptroller of the currency, the superintendent of financial institutions, the federal deposit insurance corporation, or the board of governors of the federal reserve system.