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History
- Referred to banks
- Delivered to assembly
- Passed senateVote 59–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.313
- Referred to banks
- Returned to senate
- Died in assembly
- Referred to banks
- Delivered to assembly
- Passed senateVote 62–0
Show 3 earlier actions
- Ordered to third reading cal.1364
- Committee discharged and committed to rules
- 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.
Authorizes state chartered banking institutions to pledge investment grade corporate bonds to secure state and municipal deposits
In Assembly Committee · Banks · Sponsor Anthony Brindisi
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4305
Title of bill
An act to amend the banking law, in relation to deposits of state and municipal funding in banking institutions
Purpose
To authorize state chartered banking institutions to pledge investment grade corporate bonds to secure state and municipal deposits.
Summary of provisions
Section 1. The banking law is amended by adding a new section 12-b which states a state chartered banking institution which holds state funds or the funds of any political subdivision thereof may accept and pledge investment grade corporate bonds, to the extend authorized by the federal reserve bank, as collateral for any discount window borrowing of such funds. Furthermore, municipal bonds having five or more years of maturity may be pledged to secure such deposits.
Justification
The Federal Reserve considers investment grade corporate bonds to be acceptable collateral for Discount Window borrowings; New York State does not allow them to be pledged as collateral to secure its municipal deposits. This bill allows state chartered banks to accept and pledge investment grade corporate bonds as collateral for any Discount Window borrowing, to the extent allowed by the Federal Reserve.
Also, New York State collateral requirements state that a bank cannot pledge municipal bonds as collateral if they mature more than five years out. The second part of this bill eases the time restrictions on New York State municipal bonds that are securing the deposits of New York State's municipalities.
Legislative history
New legislation.
Fiscal implications
To be determined.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.