On This Day In Finance: June 26 - Federal Credit Union Act Signed

By Joseph Nguyen | June 26, 2009 AAA
On This Day In Finance: June 26 - Federal Credit Union Act Signed

On June 26, 1934, President Franklin D. Roosevelt signed into law The Federal Credit Union Act. A "get the votes" campaign initiated by credit union members around the U.S. helped to get the support for the credit union legislation. The campaigners travelled the country to promote their cause, which was to allow for the creation of credit unions anywhere, nationwide.
Also, these credit union advocates eventually would all meet up at Estes Park, Colorado to create an organization to represent credit unions all across the U.S. Fifty-two delegates from 20 states met at EstesPark from August 8 to August 10 of 1934, and together signed The Constitution and Bylaws of the Credit Union National Association on August 10. (To learn more, read Tired Of Banks? Try A Credit Union.)

The Act
The passing of this act created the federal credit union system and the Bureau of Federal Credit Unions, and allowed credit unions to be chartered under state or federal law, called dual chartering. It also established the deposits, obligations and securities in which a federal credit union could invest.

History
The first credit union in the U.S. was the La Caisse Populaire Ste-Marie, which was created on November 24, 1908 in Manchester, New Hampshire. The credit union was established as a way to provide financial services to French-Canadian textile mill workers that attended St. Mary's Church. The first deposits were held in a tin box. (For more on banking, check out Demystification Of Bank Accounts.)

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