ORLANDO, Fla.—It does not appear likely a credit union in Colorado that would serve the state’s marijuana industry will be approved for federal deposit insurance any time soon, judging from comments made by one NCUA board member.
The credit union, The Fourth Corner CU, has been issued a state charter to operate. But it still requires NCUSIF insurance to open, which is being complicated by the fact the sale and consumption of marijuana remains illegal under federal law, regardless of state law.
During the NACUSO annual meeting, NCUA Vice Chairman Rick Metsger was asked during a Q&A about serving marijuana-related businesses. When it’s just one business among many a credit union might be serving, Metsger said there are no safety and soundness issues.
“Where that changes and where the real issue is, if you get a CU that is set up entirely as a marijuana CU,” Metsger said. “Now you have concentrated that risk. Then you have to look at the fact federal law is different from the state law. Can a federal insurer insure something that’s illegal? Can the federal agency obtain the collateral if there is any problem, when it’s illegal to have that collateral? At some point in time the federal level at the congressional and Department of Justice level will make a determination that makes this point clear.”
In 2014 organizers of Fourth Corner CU had hoped to open their doors by Jan. 1, 2015.
CUToday.info’s full story on Metsger’s remarks can be found here.