Credit union designations as qualified public depositories; withdrawal by the Chief Financial Officer from collateral agreements; limits on public deposits.

(1) The Chief Financial Officer may not designate a credit union as a qualified public depository unless, at the time the credit union submits its agreement of contingent liability and its collateral agreement, the credit union submits a signed statement from a public depositor indicating that if the credit union is designated as a qualified public depository, the public depositor intends to deposit public funds with the credit union.

(2) Within 10 business days after the Chief Financial Officer notifies the credit union that the Chief Financial Officer has withdrawn from the collateral agreement, the credit union must return all public deposits that the credit union holds to the public depositor who deposited the funds. The notice provided for in this subsection may be sent to a credit union by regular mail or by e-mail.

(3)(a) All credit unions designated as qualified public depositories may hold only the following public deposits:

1. A total combined amount of not more than 7 percent of the total funds held in the state treasury.

2. A total combined amount of not more than 7 percent of all public deposits of any state university or any state college.

(b) A credit union may not hold public deposits of more than 10 percent of its total institution’s assets.