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History
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Companion bill
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Allows savings banks, savings and loan associations and credit unions to accept deposits from municipal corporations; repealer
In Assembly Committee · Banks · Sponsor Darryl Towns
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the banking law, the state finance law, the education law, the general city law, the general municipal law, the second class cities law and the village law, in relation to permitting savings banks, savings and loan associations and credit unions to accept deposits from municipal corporations and authorizing the deposit of certain public funds of political subdivisions and school districts in savings banks, savings and loan associations, and credit unions; and to repeal certain provisions of the banking law relating thereto
Purpose of bill
To liberalize the acceptance of deposits by state chartered thrifts and state chartered credit unions by allowing savings banks, savings and loan associations, and credit unions to accept municipal deposits.
Summary of provisions
To amend the banking law, the state finance law, the education law, the general city law, the general municipal law, the second class cities law, and the village law, in relation to permitting state chartered savings banks, savings and loan associations and credit unions to accept deposits from municipal corporations and authorizing the deposit of certain public funds of political subdivisions and school districts in savings banks, savings and loan associations, and credit unions, and to repeal certain provisions of the banking law relating thereto.
Justification
Currently, public funds may be deposited only in commercial banks. In addition, the only banking organizations authorized by state law to furnish the security necessary to attract such deposits are banks and trust companies.
The current law restricting municipal deposits to commercial banks is inadequate and out dated for the twenty-first century, stemming from the days when commercial banks were the most prominent option for these types of investments. Financially, savings banks, savings and loan associations and credit unions are regularly approached by local governing bodies requesting to place public funds in their financial institutions, but have no choice but to turn them away. The bill would give any local governing body such as schools, libraries, fire districts, towns and counties, more depository choices.
Prior legislative history
2008: A.10450-A (Towns) passed Assembly, delivered to Senate.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.