Bill Text: NY A03262 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

Spectrum: Slight Partisan Bill (Democrat 24-8)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A03262 Detail]

Download: New_York-2019-A03262-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3262
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 29, 2019
                                       ___________
        Introduced  by  M.  of  A. ZEBROWSKI, LUPARDO, MOSLEY, GOTTFRIED, BLAKE,
          M. G. MILLER, COOK, STECK, FAHY, JEAN-PIERRE, WALLACE, JONES, RICHARD-
          SON, WALSH, BRABENEC, MONTESANO, RA -- Multi-Sponsored by -- M. of  A.
          ABBATE, BARRETT, DICKENS, ENGLEBRIGHT, FRIEND, THIELE -- read once and
          referred to the Committee on Banks
        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
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Paragraph d of subdivision 1 of section 10 of the general
     2  municipal law, as amended by chapter 623 of the laws of 1998, is amended
     3  to read as follows:
     4    d. "Bank" shall mean a bank  as  defined  by  the  banking  law  or  a
     5  national  banking  association  located and authorized to do business in
     6  New York; a credit union as defined by the  banking  law  or  a  federal
     7  credit union located and authorized to do business in New York which has
     8  its  principal office in a location described in paragraph (a) of subdi-
     9  vision thirty-eight of section four hundred fifty-four  of  the  banking
    10  law,  or  a  branch  office  in a location described in paragraph (b) of
    11  subdivision thirty-eight of section four hundred fifty-four of the bank-
    12  ing law; or a savings bank as defined by the banking law, a savings  and
    13  loan  association  as  defined  by  the banking law or a federal savings
    14  association located and authorized to do business in New York which  has
    15  its  principal office in a location described in paragraph (a) of subdi-
    16  vision two of section two hundred thirty-seven of the banking law, or  a
    17  branch  office  in  a location described in paragraph (b) of subdivision
    18  two of section two hundred thirty-seven of the banking law.
    19    § 2. Section 454 of the banking law is amended by adding a new  subdi-
    20  vision 38 to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02132-01-9
        A. 3262                             2
     1    38.  (a)  To  accept  deposits  for  credit  to a local government, as
     2  defined in paragraph a of subdivision one of section ten of the  general
     3  municipal law, at its principal office where such credit union maintains
     4  its principal office within the jurisdiction of such local government.
     5    (b) To accept deposits for credit to a local government, as defined in
     6  paragraph  a  of subdivision one of section ten of the general municipal
     7  law, at its branch office where such credit  union  maintains  a  branch
     8  office within the jurisdiction of such local government.
     9    §  3. The banking law is amended by adding a new section 454-a to read
    10  as follows:
    11    § 454-a. Deposits of public money with credit  unions;  security.    A
    12  credit  union may accept deposits of public money subject to the limita-
    13  tions provided in  subdivision  thirty-eight  of  section  four  hundred
    14  fifty-four  of  this  article.  Such credit union shall pledge assets or
    15  furnish other security satisfactory in form and amount to the depositor,
    16  for the repayment of monies held in the name  of  such  depositor,  when
    17  required to be secured by applicable law, decree or regulation.
    18    §  4.  Subdivision  2 of section 237 of the banking law, as amended by
    19  chapter 360 of the laws of 1984, is amended to read as follows:
    20    2. [No savings bank shall accept any deposit for credit to any munici-
    21  pal corporation.] (a) A  savings  bank  which  maintains  its  principal
    22  office  within  the  jurisdiction  of  a local government, as defined in
    23  paragraph a of subdivision one of section ten of the  general  municipal
    24  law,  may  accept  deposits  at such principal office for credit to such
    25  local government.
    26    (b) A savings bank which maintains a branch office within  the  juris-
    27  diction  of a local government, as defined in paragraph a of subdivision
    28  one of section ten of the general municipal law, may accept deposits  at
    29  such branch office for credit to such local government.
    30    §  5. Section 234 of the banking law is amended by adding a new subdi-
    31  vision 27 to read as follows:
    32    27. Pursuant to subdivision two of section two hundred thirty-seven of
    33  this article, to pledge assets or furnish other security satisfactory in
    34  form and amount to the depositor, for the repayment of  monies  held  in
    35  the  name  of  such depositor, when required to be secured by applicable
    36  law, decree or regulation  and  to  exercise  the  powers  contained  in
    37  section ninety-six-b of this chapter.
    38    §  6. Section 383 of the banking law is amended by adding a new subdi-
    39  vision 18 to read as follows:
    40    18. Pursuant to subdivision two of section two hundred thirty-seven of
    41  this chapter, to pledge assets or furnish other security satisfactory in
    42  form and amount to the depositor, for the repayment of  monies  held  in
    43  the  name  of  such depositor, when required to be secured by applicable
    44  law, decree or regulation  and  to  exercise  the  powers  contained  in
    45  section ninety-six-b of this chapter.
    46    §  7.  This  act shall take effect on the ninetieth day after it shall
    47  have become a law.