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
3 Co-sponsors
History
- Referred to local government
- Referred to local government
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 Assembly Committee · Banks · Sponsor Annette Robinson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4785
Title of bill
An act to amend the general municipal law and the banking 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 Credit unions 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 associations.
Section 2. adds accepting deposits from a local government to the general powers of a credit union.
Section 3 requires credit unions to pledge assets or furnish other security 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 security 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.
Justification
The current law restricting municipal deposits to commercial banks is an anachronism dating back to 1909 and stemming from the days when commercial banks were the only secure option for these types of investments. In 1909, credit unions were not even in existence as neither the state nor federal credit union acts had been enacted. At that time, savings banks, savings & loan associations 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 are now on par with commercial banks in many of the services they provide. Further, credit unions, savings banks and savings and loan associations can all offer the collateral/security required by municipalities. 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
A.6511 of the 2007-2008 legislative session,
A.4370 of the laws of 2009-2010, A.3239 of the 2011-2012 legislative session and A.1112 of the 2013-2014 legislative session.
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.