What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
8 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in banks
- Print number 4370a
- Amend and recommit to banks
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations
In Senate Committee · Rules · Sponsor Kevin S. Parker
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A4370A
Title of bill
An act to amend the general municipal law and the bank- ing law, in relation to allowing credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations
Purpose
To allow savings banks, savings and loan associations and federal savings banks to accept deposits from municipalities.
Summary
Section 1 changes the definition of "bank" to include credit unions, or federal credit unions, savings banks and savings & loan asso- ciations.
Section 2. adds accepting deposits from a local government to the gener- al powers of a credit union.
Section 3 requires credit unions to pledge assets or furnish other secu- rity for deposits accepted from local governments.
Section 4 removes restrictions on savings banks from accepting deposits from a local government.
Section 5 requires savings banks to pledge assets or furnish other secu- rity for deposits accepted from local governments.
Section 6 requires savings and loan associations to pledge assets or furnish other security for deposits accepted from local governments.
Section 7 sets forth the effective date of 90 days.
Current law
Under current law, only commercial banks and trust compa- nies are allowed to accept municipal deposits.
Justification
The current law restricting municipal deposits to commer- cial banks is an anachronism, stemming from the days when commercial banks were the most secure option for these types of investments. At that time, savings banks, savings & loan associations and credit unions, were smaller, less secure entities that primarily served individual investors by providing investment opportunities and offering loans, particularly mortgages to residents of the communities they served. However, savings banks, savings & loan associations and credit unions are now on par with commercial banks.in many of the services they provide as well as the security they offer to their investors. Allowing savings banks, savings & loans and credit unions to accept municipal deposits would be beneficial to the communities they are serving by offering a competitive alternative to commercial banks, who are often a large corporate entity with no real affiliation or commitment to the community they serve.
Legislative history
2006, S639
FISCAL IMPLICATIONS:; None to the State
Effective date
Ninety days following enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.