SB87
Log in to followAN ACT relating to the provision of financial services and products by credit unions.
Amend KRS 66.480 to allow local government and school district investments in United States obligations by a repurchase agreement with a credit union and in interest-bearing accounts issued through a credit union; amend KRS 41.010 to redefine "bank" and "state depository" to include credit unions; amend KRS 41.070 to prohibit receipts from being held, used, or deposited in a personal or special credit union account; amend KRS 41.220 to allow credit unions to be designated as state depositories; amend KRS 41.240, 41.250, 41.300, 30A.120, and 30A.200 to conform.
Introduced: January 14, 2026
Last action: January 14, 2026
Plain-language summary
This bill would expand the role of credit unions in Kentucky's financial system by allowing local governments, school districts, and the state to use credit unions as official depositories for public funds. It updates state law to treat credit unions more like banks when it comes to holding and managing government money. It also adds a rule prohibiting public funds from being deposited into personal or special credit union accounts. Who it may affect: local government agencies, school districts, and credit unions operating in Kentucky.
Bill Text Versions
Legislative History
Primary Sponsor
