Bill Text: NY S03028 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to credit unions.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced) 2019-01-31 - REFERRED TO BANKS [S03028 Detail]

Download: New_York-2019-S03028-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3028
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 31, 2019
                                       ___________
        Introduced  by  Sens.  FUNKE, RITCHIE -- read twice and ordered printed,
          and when printed to be committed to the Committee on Banks
        AN ACT to amend the banking law and the state finance law,  in  relation
          to credit unions
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The banking law is amended by adding a new article  2-D  to
     2  read as follows:
     3                                 ARTICLE 2-D
     4                        CREDIT UNION DEPOSIT PROGRAM
     5  Section 89. Credit union deposit program; purpose.
     6          90. Eligibility.
     7          91. Deposits.
     8    §  89.  Credit  union  deposit program; purpose. In recognition of the
     9  economic benefits and stimulus which result from the placement of depos-
    10  its in local credit unions, the credit union deposit program  is  hereby
    11  created to authorize and encourage the state comptroller and the commis-
    12  sioner  of  taxation and finance to deposit a portion of the funds under
    13  their control into credit unions.
    14    § 90. Eligibility. 1. To be eligible to receive deposits, or to  renew
    15  existing  deposits  under this program, a credit union must be chartered
    16  under the provisions of this chapter and must have a current examination
    17  rating of satisfactory or better. The superintendent shall, if requested
    18  by the state comptroller or the commissioner of  taxation  and  finance,
    19  confirm  whether  a particular credit union meets the criteria specified
    20  in this section.
    21    2. A federal credit union may also be eligible to receive deposits, or
    22  to renew existing deposits, under this program  if:  (a)  its  principal
    23  office is located in this state; (b) it has a current examination rating
    24  of  satisfactory  or  better;  and  (c) it meets any additional criteria
    25  established by the comptroller and  the  commissioner  of  taxation  and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07000-01-9

        S. 3028                             2
     1  finance  to determine eligibility for participation in the program. Such
     2  criteria may include a credit union's loan to deposit ratio, its  record
     3  of small business lending, and the impact such deposits would have on an
     4  area's economic activity.
     5    §  91.  Deposits.  1.  Notwithstanding  any  provisions  of law to the
     6  contrary, the state comptroller and the  commissioner  of  taxation  and
     7  finance  shall,  for  the purposes of administering moneys in accordance
     8  with the provisions of sections ninety-eight-a and one hundred  five  of
     9  the state finance law, give consideration to depositing funds into those
    10  credit  unions which are deemed eligible to receive deposits pursuant to
    11  section ninety of this article.
    12    2. The maximum amount of funds which the  state  comptroller  and  the
    13  commissioner  of  taxation  and  finance  may deposit under this program
    14  shall not exceed two hundred fifty million dollars each.
    15    3. Notwithstanding any provision of law to the contrary, any  deposits
    16  made pursuant to this article shall be made at rates, and for such peri-
    17  ods of time, as may be agreed to by the state comptroller or the commis-
    18  sioner of taxation and finance and the eligible credit union.
    19    4.  Any  deposits  made  pursuant to this article may be secured by an
    20  irrevocable letter of credit issued by a federal home loan bank.
    21    § 2. The banking law is amended by adding a new section 454-a to  read
    22  as follows:
    23    §  454-a.  Deposits of public money with credit unions. A credit union
    24  may accept deposits of public money in accordance with the provisions of
    25  section ninety-one of this chapter and sections ninety-eight-a  and  one
    26  hundred five of the state finance law.
    27    §  3.  The  opening  paragraph of subdivision 1 of section 98-a of the
    28  state finance law, as amended by chapter 545 of the  laws  of  2005,  is
    29  amended to read as follows:
    30    Except  as  otherwise provided in subdivision two of this section, any
    31  moneys in the general fund of the state or moneys received from the sale
    32  of any bonds or notes issued by the state, any moneys  in  any  fund  or
    33  account  of  the state, heretofore or hereafter established, the invest-
    34  ment of which is not otherwise authorized and which are not  immediately
    35  required  may  be  invested  by  the  comptroller.    Such moneys may be
    36  invested only in obligations of the categories specified in subdivisions
    37  one to five, both inclusive, and subdivision  seven,  subdivision  four-
    38  teen,  as  added by chapters seven hundred ninety-seven and nine hundred
    39  thirty-two of the laws of nineteen  hundred  sixty-three,  respectively,
    40  subdivisions  fifteen,  sixteen and seventeen of section ninety-eight of
    41  this article, maturing or redeemable at the option of the holder  within
    42  twelve  years  of the date of such investment, subdivisions two-a, eigh-
    43  teen, nineteen and twenty of section ninety-eight of this article or  in
    44  a  certificate  of deposit of a bank [or], trust company or credit union
    45  in this state. Any certificate of deposit shall be fully secured by  the
    46  issuer  thereof  depositing with the comptroller stocks, bonds, or notes
    47  of any county, town, city, village, fire district or school district  of
    48  this  state  issued  pursuant to law and maturing within five years from
    49  the date of issuance of such certificate of deposit, bonds or  notes  or
    50  direct  or  guaranteed obligation of the United States of America or its
    51  agencies or of the state of New York or bonds and notes issued  for  any
    52  of  the  corporate  purposes of the municipal assistance corporation for
    53  the city of New York in an amount equal to the amount  of  such  certif-
    54  icate  of deposit. Any bonds, notes or certificates of deposit purchased
    55  with moneys of the general fund shall be available  always  to  pay  any
    56  lawful  appropriation  in  force.  Any  bonds,  notes or certificates of

        S. 3028                             3
     1  deposit purchased with moneys received from the sale  of  any  bonds  or
     2  notes  issued by the state shall be available always for the purposes or
     3  purpose for which such bonds or notes were issued.  Any bonds, notes  or
     4  certificates  of  deposit purchased with moneys of any other funds shall
     5  be available always for the purpose for which  such  fund  was  created.
     6  Unless otherwise required by law, income received on any moneys invested
     7  pursuant  to  this  section  shall be credited to the fund or funds from
     8  which such moneys were invested, provided, however, the  comptroller  is
     9  hereby  precluded  from  crediting  interest  earnings to funds/accounts
    10  which:
    11    § 4. Subdivisions 1 and 2 of section 105 of  the  state  finance  law,
    12  subdivision 1 as amended by chapter 204 of the laws of 2002, subdivision
    13  2 as amended by chapter 154 of the laws of 1953, paragraph b of subdivi-
    14  sion  2  as  amended  by chapter 345 of the laws of 2005, are amended to
    15  read as follows:
    16    1. All moneys received by the commissioner of taxation and finance  on
    17  account of the state, excepting such moneys as are required by law to be
    18  deposited to the credit of the comptroller, but including such moneys as
    19  are thereafter paid into the state treasury by the comptroller, shall be
    20  deposited  by the commissioner of taxation and finance within three days
    21  after the receipt thereof, either as a demand deposit  or  an  interest-
    22  bearing  time  deposit (other than a time certificate of deposit), as he
    23  and the comptroller may determine, in such banks, trust companies [and],
    24  industrial banks and credit unions as in his opinion and the opinion  of
    25  the  comptroller  are secure. The moneys so deposited shall be placed to
    26  the account of the commissioner of taxation and finance. He shall keep a
    27  bankbook in which shall be entered his account of deposit in and  moneys
    28  drawn  from  the  banks  and trust companies [and], industrial banks and
    29  credit unions in which deposits are made by him, which he shall  exhibit
    30  to  the  comptroller  for  his  inspection on the first Tuesday of every
    31  month and oftener if required. He shall not draw any  moneys  from  such
    32  banks, trust companies [or], industrial banks or credit unions unless by
    33  checks  signed and countersigned in the manner prescribed by section one
    34  hundred one, unless otherwise provided by law. No moneys shall  be  paid
    35  by  any  such  bank, trust company [or], industrial bank or credit union
    36  out of any such deposit except upon such checks.   Moneys  may  be  paid
    37  through  electronic  transfer in accordance with procedures developed by
    38  the commissioner  of  taxation  and  finance  and  the  comptroller  and
    39  consistent with the requirements of this section for recording payments.
    40  Such  payments  through  electronic  transfer  shall  be considered, for
    41  purposes of this chapter, to be moneys drawn by check.  Every such bank,
    42  trust company [or], industrial bank or credit union  shall  transmit  to
    43  the comptroller monthly statements of all moneys received and paid by it
    44  on account of the commissioner of taxation and finance.
    45    2.  Every  bank, trust company [and], industrial bank and credit union
    46  designated for the deposit of state moneys under the provisions of  this
    47  section shall, before deposits are made:
    48    a.  Execute  and  file with the commissioner of taxation and finance a
    49  bond to the state in such form and with such surety or sureties for such
    50  sums as may be prescribed and approved by the commissioner  of  taxation
    51  and  finance  and comptroller, for the safekeeping and prompt payment of
    52  such moneys on legal demand therefor with interest, if any; or
    53    b. In lieu of such surety bond, with the permission of the comptroller
    54  and the commissioner of taxation and finance,  deposit  with  the  comp-
    55  troller outstanding unmatured:

        S. 3028                             4
     1    (1)  bonds  or  notes of the United States of America, or obligations,
     2  the payment of which is guaranteed by the United States of America,
     3    (2) bonds or notes of the state of New York,
     4    (3)  bonds  or notes of any county, town, city, village, fire district
     5  or school districts in the state of New York authorized to be issued  by
     6  law,
     7    (4) bonds of the Port of New York Authority of any year,
     8    (5) bonds of the Buffalo and Fort Erie Public Bridge Authority,
     9    (6) bonds of the Triborough bridge and tunnel authority,
    10    (7) bonds or notes of the New York state thruway authority,
    11    (8) bonds, notes or other obligations of any municipal housing author-
    12  ity  in  the  state of New York authorized to be issued by law, provided
    13  such bonds, notes or other obligations qualify under the  provisions  of
    14  section forty-nine of the public housing law,
    15    (9) bonds or notes of the Power Authority of the state of New York,
    16    (10) bonds or notes of the Niagara Frontier Port Authority,
    17    (11)  bonds  or  notes  of the Dormitory Authority of the state of New
    18  York,
    19    (12) bonds or notes of the New York state bridge authority,
    20    (13) bonds or notes issued for any of the corporate  purposes  of  the
    21  New York state housing finance agency,
    22    (14)  bonds  or  notes  of  the  Metropolitan  Commuter Transportation
    23  Authority,
    24    (15) bonds or notes of the New York State Pure Waters  Authority,  for
    25  which the commissioner of taxation and finance and the comptroller shall
    26  deliver  a  certificate  of  deposit  containing  the conditions of such
    27  deposit,
    28    (16) bonds or notes of the Niagara Frontier Transportation Authority,
    29    (17) bonds or notes of the Rochester-Genesee  Regional  Transportation
    30  Authority,
    31    (18) bonds or notes of the Capital District Transportation Authority,
    32    (19)  bonds  or  notes of the Central New York Regional Transportation
    33  Authority,
    34    [20] (20) Bonds or notes of the New York state project finance agency,
    35    (21) Bonds or notes of the municipal assistance  corporation  for  the
    36  city of New York,
    37    (22)  bonds  or  notes issued for any of the corporate purposes of the
    38  New York state medical care facilities finance  agency,  for  which  the
    39  commissioner of taxation and finance and the comptroller shall deliver a
    40  certificate of deposit containing the conditions of such deposit, or
    41    (23) irrevocable letters of credit issued by a federal home loan bank.
    42    c. With the permission of the comptroller and commissioner of taxation
    43  and  finance  execute  and  file  with  the commissioner of taxation and
    44  finance an undertaking to the effect that such bank, trust company [or],
    45  industrial bank or credit union will safely keep and promptly  pay  over
    46  all such deposits on legal demand therefor with interest, if any, and as
    47  collateral  to such undertaking deposit with the comptroller a certified
    48  check or checks drawn on and certified by the federal reserve bank with-
    49  in the state payable to his order in such amount or amounts as shall  be
    50  agreed upon by the comptroller and the depositary.
    51    § 5. This act shall take effect immediately.
feedback