senate Bill S717

Establishes the savings bank, savings and loan association or credit union municipal deposit program

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Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 14 / Jan / 2009
    • REFERRED TO LOCAL GOVERNMENT
  • 22 / Apr / 2009
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / Jan / 2010
    • REFERRED TO LOCAL GOVERNMENT

Summary

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Bill Details

See Assembly Version of this Bill:
A4319
Versions:
S717
Legislative Cycle:
2009-2010
Current Committee:
Senate Local Government
Law Section:
General Municipal Law

Sponsor Memo

BILL NUMBER: S717

TITLE OF BILL :
An act to amend the general municipal law and the state finance law,
in relation to the establishment of a savings bank, savings and loan
association or credit union municipal deposit program, and limiting
deposits of public funds in such institutions to one million dollars


PURPOSE :
Allows savings banks, savings and loan associations and credit unions
to accept deposits from municipalities when such local governing body
designates, by resolution, one or more savings banks, savings and loan
associations or credit unions as its depositary financial institution.

CURRENT LAW :
Under current law, only commercial banks and trust companies are
allowed to accept municipal deposits.

JUSTIFICATION :
The current law restricting municipal deposits to commercial banks is
inadequate and out-dated for the twenty-first century, stemming from
the days when commercial banks were the most prominent option for
these types of investments. Financially sound, federally insured
savings banks, savings & loan associations and credit unions are
regularly approached by local governing bodies requesting to place
public funds in their financial institutions, but have no choice but
to turn them away. This bill would give any local governing body such
as schools, library, fire districts, towns and counties, more
depository choices.

This legislation would require such local governing bodies to
designate, by resolution, one or more savings banks, savings & loan
associations or credit unions as their designated depositary giving
them depository choice, and an opportunity to take advantage of the
best possible rates in the interest of the public they serve.
Municipalities would only be allowed to deposit up to $1 million per
depository. In addition to saving taxpayer dollars, allowing savings
banks, savings & loans and credit unions to accept municipal deposits
would be beneficial to such communities because funds would stay local
allowing for reinvestment directly back into the community.

LEGISLATIVE HISTORY :
New bill.

FISCAL IMPLICATIONS :
None to the State.

EFFECTIVE DATE :
This act shall take effect immediately.
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