New York A 4818: Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations

Bill Text

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A04818 Summary:

BILL NOA04818 

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SAME ASSAME AS S03066

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SPONSORVanel

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COSPNSRButtenschon, Sayegh, Jacobson, Weprin, Burdick, Slater, Levenberg, Sempolinski

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MLTSPNSR

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Amd §10, Gen Muni L; amd §§454, 237, 234, 383, 86 & 87, add §§454-a & 454-b, Bank L

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

Go to top A04818 Actions:

BILL NOA04818 

&nbsp

02/06/2025referred to banks

01/07/2026referred to banks

Go to topA04818 Committee&nbspVotes:

Go to topA04818 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA04818 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4818

 2025-2026 Regular Sessions

 IN ASSEMBLY

 February 6, 2025
 ___________

 Introduced by M. of A. VANEL, BUTTENSCHON, SAYEGH, JACOBSON, WEPRIN,
 BURDICK, SLATER, LEVENBERG -- 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; to direct the department of
 financial services to conduct a study and issue a report concerning
 the impact of allowing certain financial institutions to accept local
 government public deposits; and providing for the repeal of certain
 provisions upon the expiration thereof

 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 savings bank as defined by the banking law, a savings and
 7 loan association as defined by the banking law or a federal savings
 8 association located and authorized to do business in New York which has
 9 its principal office in a location described in paragraph (a) of subdi-
 10 vision two of section two hundred thirty-seven of the banking law, or a
 11 branch office in a location described in paragraph (b) of subdivision
 12 two of section two hundred thirty-seven of the banking law.
 13 § 2. Section 10 of the general municipal law is amended by adding a
 14 new subdivision 5 to read as follows:
 15 5. In addition to the financial institutions authorized to accept
 16 public deposits in subdivision two of this section, credit unions, as
 17 defined by the banking law or a federal credit union located and author-
 18 ized to do business in New York which has its principal office in a

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05966-01-5

 A. 4818 2

 1 location described in paragraph (a) of subdivision thirty-eight of
 2 section four hundred fifty-four of the banking law, or a branch office
 3 in a location described in paragraph (b) of subdivision thirty-eight of
 4 section four hundred fifty-four of the banking law, may accept public
 5 deposits by a local government subject to the limitations set forth
 6 herein. For the calendar year beginning January first, two thousand
 7 twenty-six, the governing board of a local government may designate one
 8 or more credit unions, for the deposit of public funds in an amount not
 9 to exceed five hundred thousand dollars in each institution. For the
 10 calendar year beginning January first, two thousand twenty-seven, the
 11 governing board of a local government may designate one or more credit
 12 unions for the deposit of public funds in an amount not to exceed one
 13 million dollars in each institution. For the calendar year beginning
 14 January first, two thousand twenty-eight, the governing board of a local
 15 government may designate one or more credit unions for the deposit of
 16 public funds in an amount not to exceed two million dollars in each
 17 institution. For the calendar year beginning January first, two thou-
 18 sand twenty-nine, the governing board