Relates to the community bank deposit program; increases the maximum amount of funds on deposit at a community banking institution to thirty million dollars.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9573
SPONSOR: Vanel TITLE OF BILL:
An act to amend the banking law, in relation to the community bank
deposit program
PURPOSE:
To incentivize participation in the Community Bank Deposit Program.
SUMMARY OF PROVISIONS:
Section 1 amends the Banking Law at section 87(2) to increase the allow-
able amount of state deposits for the Community Bank Deposit Program
from $20 million to $30 million.
Section 2 sets forth an effective date.
JUSTIFICATION:
Increasing the maximum allowable amount of funds on deposit from $20
million to $30 million will expand available lending for home mortgages,
small businesses and farms, and community development by participating
community banks. In addition, increasing the amount available per finan-
cial institution will create an increased incentive for eligible banks
to participate in this program, expanding the geographic impact of state
deposits used for lending.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9573
IN ASSEMBLY
January 21, 2026
___________
Introduced by M. of A. VANEL -- (at request of the State Comptroller) --
read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to the community bank
deposit program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 87 of the banking law, as amended
2 by chapter 495 of the laws of 2013, is amended to read as follows:
3 2. The maximum amount of funds which the state comptroller and the
4 commissioner of taxation and finance may deposit under this program
5 shall not exceed two hundred fifty million dollars each. The maximum
6 amount of funds on deposit at a community banking institution shall not
7 exceed [twenty] thirty million dollars.
8 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13338-01-5
