Authorizes state chartered banking institutions to pledge investment grade corporate bonds to secure state and municipal deposits; also authorizes the pledging of municipal bonds having a maturity of more than 5 years.
STATE OF NEW YORK
________________________________________________________________________
4305
2015-2016 Regular Sessions
IN SENATE
March 11, 2015
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to deposits of state and
municipal funding in banking institutions
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 section 12-b to
2 read as follows:
3 § 12-b. State and municipal funds deposited in state chartered banking
4 institutions. 1. Notwithstanding any provision of the state finance law,
5 the local finance law or this chapter to the contrary, a state chartered
6 banking institution which holds state funds or the funds of any poli-
7 tical subdivision thereof may accept and pledge investment grade corpo-
8 rate bonds, to the extent authorized by the federal reserve bank, as
9 collateral for any discount window borrowing of such funds. Furthermore
10 municipal bonds having five or more years of maturity may be pledged to
11 secure such deposits.
12 § 2. This act shall take effect on the first of January next succeed-
13 ing the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06066-01-5
