Pubdate: Fri, 12 Dec 2014
Source: Denver Post (CO)
Copyright: 2014 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: David Migoya

DENVER POT CREDIT UNION AWAITS APPROVAL

Organizers behind the world's first credit union established for the 
marijuana industry had no word Wednesday on the status of their 
application for a master account with the Federal Reserve System.

The Fourth Corner Credit Union hoped its account would be established 
by Dec. 10, but will have to wait at least another two weeks to learn 
the fate of their efforts to open its doors, people close to the process said.

Any credit union or bank needs a Federal Reserve master account to 
operate. Approval is typically procedural once a business has a valid 
charter and routing numbers.

Fourth Corner last month obtained a state charter to operate, and 
routing numbers were assigned by the American Bankers Association.

The credit union is also awaiting word on its application for deposit 
insurance, which it made to the National Credit Union Association. 
The federal regulator of credit unions has said the process could 
take up to two years.

Colorado law allows a credit union to open its doors while an 
insurance application is pending, but it must have the federal master account.

Accounts are established approximately every two weeks during 
maintenance cycles at the Federal Reserve.

Marijuana businesses have had difficulty obtaining consistent banking 
services because although the use and sale of pot for recreational 
purposes is legal in Colorado, the drug is illegal under federal law.

The credit union membership would be open only to marijuana 
businesses, associated companies and those individuals who are 
members of groups that support pot legalization.
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MAP posted-by: Jay Bergstrom