Amd §10, Gen Muni L; amd §§454, 237, 234 & 383, Bank L
Relates to allowing credit unions, savings banks, savings and loan associations, national banks, federal savings associations, federal credit unions, and out-of-state banks to accept and secure deposits from municipal corporations.
STATE OF NEW YORK
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5806
2019-2020 Regular Sessions
IN SENATE
May 15, 2019
___________
Introduced by Sen. MAYER -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law and the banking law, in
relation to allowing certain entities 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; or a savings bank, savings and loan association, credit union,
7 national bank, federal savings association, federal credit union, or
8 out-of-state bank, as such terms are defined in the banking law, in each
9 case having a principal or branch office in this state and insured by
10 the Federal Deposit Insurance Corporation, the National Credit Union
11 Share Insurance Fund, or a successor to the Federal Deposit Insurance
12 Corporation or the National Credit Union Share Insurance Fund.
13 § 2. Section 454 of the banking law is amended by adding a new subdi-
14 vision 38 to read as follows:
15 38. To accept deposits for credit to a local government, as defined in
16 paragraph a of subdivision one of section ten of the general municipal
17 law provided that such credit union shall pledge assets or furnish other
18 security satisfactory in form and amount to the depositor, for the
19 repayment of monies held in the name of such depositor, when required to
20 be secured by applicable law, decree or regulation.
21 § 3. Subdivision 2 of section 237 of the banking law, as amended by
22 chapter 360 of the laws of 1984, is amended to read as follows:
23 2. [No savings bank shall accept any deposit for credit to any munici-
24 pal corporation] A savings bank may accept deposits for credit to any
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11282-03-9
S. 5806 2
1 municipal corporation, provided that such savings bank shall pledge
2 assets or furnish other security satisfactory in form and amount to the
3 depositor, for the repayment of monies held in the name of such depos-
4 itor, when required to be secured by applicable law, decree or regu-
5 lation.
6 § 4. Section 234 of the banking law is amended by adding a new subdi-
7 vision 27 to read as follows:
8 27. Pursuant to subdivision two of section two hundred thirty-seven of
9 this article, to pledge assets or furnish other security satisfactory in
10 form and amount to the depositor, for the repayment of monies held in
11 the name of such depositor, when required to be secured by applicable
12 law, decree or regulation and to exercise the powers contained in
13 section ninety-six-b of this chapter.
14 § 5. Section 383 of the banking law is amended by adding a new subdi-
15 vision 18 to read as follows:
16 18. Pursuant to subdivision two of section two hundred thirty-seven of
17 this chapter, to pledge assets or furnish other security satisfactory in
18 form and amount to the depositor, for the repayment of monies held in
19 the name of such depositor, when required to be secured by applicable
20 law, decree or regulation and to exercise the powers contained in
21 section ninety-six-b of this chapter.
22 § 6. This act shall take effect on the ninetieth day after it shall
23 have become a law.
