NY State Senate Bill S1782A

Archive: Last Bill Status - In Senate Committee Rules Committee

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In Committee
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Actions

view actions (7)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 14, 2010	committee discharged and committed to rules
May 03, 2010	notice of committee consideration - requested
Mar 17, 2010	reported and committed to finance
Feb 17, 2010	print number 1782a
Feb 17, 2010	amend and recommit to local government
Jan 06, 2010	referred to local government
Feb 06, 2009	referred to local government

Votes

view votes

Mar 17, 2010 - Local Government committee Vote

S1782A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Local Government committee vote details

Local Government Committee Vote: Mar 17, 2010

aye (2)

nay (2)

aye wr (3)

excused (1)

Morahan

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

S1782 - Details

See Assembly Version of this Bill:: A4370
Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §10, Gen Muni L; amd §§454, 237, 234 & 383, add §454-a, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A3239
2013-2014: A1112
2015-2016: A7017
2017-2018: A7619
2019-2020: A3262
2021-2022: A7334, A8289
2023-2024: A3246

S1782 - Summary

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

S1782 - Sponsor Memo

 BILL NUMBER:  S1782

 TITLE OF BILL :
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


 PURPOSE :
To allow savings banks, savings and loan associations and federal
savings banks to accept deposits from municipalities.

 SUMMARY :
Section 1 changes the definition of "bank" to include credit unions,
savings banks and savings & loan associations.

Section 2 adds accepting deposits from a local government to the
general powers of a credit union.

Section 3 requires credit unions to pledge assets or furnish other
security for deposits accepted from local governments.

Section 4 removes restrictions on savings banks from accepting
deposits from a local government.

Section 5 requires savings banks to pledge assets or furnish other
security for deposits accepted from local governments.

Section 6 requires savings and loan associations to pledge assets or
furnish other security for deposits accepted from local governments.

Section 7 sets forth the effective date of 90 days.

 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
an anachronism, stemming from the days when commercial banks were the
most secure option for these types of investments. At that time,
savings banks, savings & loan associations and credit unions, were
smaller, less secure entities that primarily served individual
investors by providing investment opportunities and offering loans,
particularly mortgages to residents of the communities they served.
However, savings banks, savings & loan associations and credit unions
are now on par with commercial banks in many of the services they
provide as well as the security they offer to their investors.
Allowing savings banks, savings & loans and credit unions to accept
municipal deposits would be beneficial to the communities they are
serving by offering a competitive alternative to commercial banks, who
are often a large corporate entity with no real affiliation or
commitment to the community they serve.

 LEGISLATIVE HISTORY :
2006, S.639, 2007: S.3664

 FISCAL IMPLICATIONS :;
None to the State

 EFFECTIVE DATE :
Ninety days following enactment.

S1782 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1782

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 6, 2009
                               ___________

Introduced by Sens. PARKER, DIAZ, HASSELL-THOMPSON, C. JOHNSON, KRUEGER,
  KRUGER,  MONTGOMERY, ONORATO, SAMPSON -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment

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

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph d of subdivision 1 of section 10 of  the  general
municipal law, as amended by chapter 623 of the laws of 1998, is amended
to read as follows:
  d.  "Bank"  shall  mean  a  bank  as  defined  by the banking law or a
national banking association located and authorized to  do  business  in
New  York;  A  CREDIT  UNION  AS  DEFINED BY THE BANKING LAW LOCATED AND
AUTHORIZED TO DO BUSINESS IN NEW YORK WHICH HAS ITS PRINCIPAL OFFICE  IN
A  LOCATION  DESCRIBED  IN  PARAGRAPH (A) OF SUBDIVISION THIRTY-SEVEN OF
SECTION FOUR HUNDRED FIFTY-FOUR OF THE BANKING LAW, OR A  BRANCH  OFFICE
IN  A LOCATION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION THIRTY-SEVEN OF
SECTION FOUR HUNDRED FIFTY-FOUR OF THE BANKING LAW; OR A SAVINGS BANK AS
DEFINED BY THE BANKING LAW, A SAVINGS AND LOAN ASSOCIATION AS DEFINED BY
THE BANKING LAW OR A FEDERAL SAVINGS ASSOCIATION LOCATED AND  AUTHORIZED
TO  DO BUSINESS IN NEW YORK WHICH HAS ITS PRINCIPAL OFFICE IN A LOCATION
DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION TWO  OF  SECTION  TWO  HUNDRED
THIRTY-SEVEN  OF  THE  BANKING  LAW,  OR  A  BRANCH OFFICE IN A LOCATION
DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION TWO  OF  SECTION  TWO  HUNDRED
THIRTY-SEVEN OF THE BANKING LAW.
  S  2. Section 454 of the banking law is amended by adding a new subdi-
vision 37 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02399-01-9

S. 1782                             2

  37. (A) TO ACCEPT DEPOSITS  FOR  CREDIT  TO  A  LOCAL  GOVERNMENT,  AS
DEFINED  IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION TEN OF THE GENERAL
MUNICIPAL LAW, AT ITS PRINCIPAL OFFICE WHERE SUCH CREDIT UNION MAINTAINS
ITS PRINCIPAL OFFICE WITHIN THE JURISDICTION OF SUCH LOCAL GOVERNMENT.
  (B) TO ACCEPT DEPOSITS FOR CREDIT TO A LOCAL GOVERNMENT, AS DEFINED IN
PARAGRAPH  A  OF SUBDIVISION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL
LAW, AT ITS BRANCH OFFICE WHERE SUCH CREDIT  UNION  MAINTAINS  A  BRANCH
OFFICE WITHIN THE JURISDICTION OF SUCH LOCAL GOVERNMENT.
  S  3. The banking law is amended by adding a new section 454-a to read
as follows:
  S 454-A. DEPOSITS OF PUBLIC MONEY WITH CREDIT  UNIONS;  SECURITY.    A
CREDIT  UNION MAY ACCEPT DEPOSITS OF PUBLIC MONEY SUBJECT TO THE LIMITA-
TIONS PROVIDED IN  SUBDIVISION  THIRTY-SEVEN  OF  SECTION  FOUR  HUNDRED
FIFTY-FOUR  OF  THIS  ARTICLE.  SUCH CREDIT UNION SHALL PLEDGE ASSETS OR
FURNISH OTHER SECURITY SATISFACTORY IN FORM AND AMOUNT TO THE DEPOSITOR,
FOR THE REPAYMENT OF MONIES HELD IN THE NAME  OF  SUCH  DEPOSITOR,  WHEN
REQUIRED TO BE SECURED BY APPLICABLE LAW, DECREE OR REGULATION.
  S  4.  Subdivision  2 of section 237 of the banking law, as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
  2. [No savings bank shall accept any deposit for credit to any munici-
pal corporation.] (A) A  SAVINGS  BANK  WHICH  MAINTAINS  ITS  PRINCIPAL
OFFICE  WITHIN A LOCAL GOVERNMENT, AS DEFINED IN PARAGRAPH A OF SUBDIVI-
SION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL LAW, MAY ACCEPT  DEPOS-
ITS AT SUCH PRINCIPAL OFFICE FOR CREDIT TO SUCH LOCAL GOVERNMENT.
  (B)  A  SAVINGS  BANK  WHICH  MAINTAINS A BRANCH OFFICE WITHIN A LOCAL
GOVERNMENT, AS DEFINED IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION  TEN
OF  THE GENERAL MUNICIPAL LAW, MAY ACCEPT DEPOSITS AT SUCH BRANCH OFFICE
FOR CREDIT TO SUCH LOCAL GOVERNMENT.
  S 5. Section 234 of the banking law is amended by adding a new  subdi-
vision 26 to read as follows:
  26. PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED THIRTY-SEVEN OF
THIS ARTICLE, TO PLEDGE ASSETS OR FURNISH OTHER SECURITY SATISFACTORY IN
FORM  AND  AMOUNT  TO THE DEPOSITOR, FOR THE REPAYMENT OF MONIES HELD IN
THE NAME OF SUCH DEPOSITOR, WHEN REQUIRED TO BE  SECURED  BY  APPLICABLE
LAW,  DECREE  OR  REGULATION  AND  TO  EXERCISE  THE POWERS CONTAINED IN
SECTION NINETY-SIX-B OF THIS CHAPTER.
  S 6. Section 383 of the banking law is amended by adding a new  subdi-
vision 17 to read as follows:
  17. PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED THIRTY-SEVEN OF
THIS CHAPTER, TO PLEDGE ASSETS OR FURNISH OTHER SECURITY SATISFACTORY IN
FORM  AND  AMOUNT  TO THE DEPOSITOR, FOR THE REPAYMENT OF MONIES HELD IN
THE NAME OF SUCH DEPOSITOR, WHEN REQUIRED TO BE  SECURED  BY  APPLICABLE
LAW,  DECREE  OR  REGULATION  AND  TO  EXERCISE  THE POWERS CONTAINED IN
SECTION NINETY-SIX-B OF THIS CHAPTER.
  S 7. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

Co-Sponsors

view additional co-sponsors

S1782A (ACTIVE) - Details

See Assembly Version of this Bill:: A4370
Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §10, Gen Muni L; amd §§454, 237, 234 & 383, add §454-a, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A3239
2013-2014: A1112
2015-2016: A7017
2017-2018: A7619
2019-2020: A3262
2021-2022: A7334, A8289
2023-2024: A3246

S1782A (ACTIVE) - Summary

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

S1782A (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S1782A

 TITLE OF BILL :
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


 PURPOSE :
To allow savings banks, savings and loan associations and federal
savings banks to accept deposits from municipalities.

 SUMMARY :
Section 1 changes the definition of "bank" to include credit unions,
or federal credit unions, savings banks and savings & loan
associations.

Section 2 adds accepting deposits from a local government to the
general powers of a credit union.

Section 3 requires credit unions to pledge assets or furnish other
security for deposits accepted from local governments.

Section 4 removes restrictions on savings banks from accepting
deposits from a local government.

Section 5 requires savings banks to pledge assets or furnish other
security for deposits accepted from local governments.

Section 6 requires savings and loan associations to pledge assets or
furnish other security for deposits accepted from local governments.

Section 7 sets forth the effective date of 90 days.

 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
an anachronism, stemming from the days when commercial banks were the
most secure option for these types of investments. At that time,
savings banks, savings & loan associations and credit unions, were
smaller, less secure entities that primarily served individual
investors by providing investment opportunities and offering loans,
particularly mortgages to residents of the communities they served.
However, savings banks, savings & loan associations and credit unions
are now on par with commercial banks in many of the services they
provide as well as the security they offer to their investors.
Allowing savings banks, savings & loans and credit unions to accept
municipal deposits would be beneficial to the communities they are
serving by offering a competitive alternative to commercial banks, who
are often a large corporate entity with no real affiliation or
commitment to the community they serve.

 LEGISLATIVE HISTORY :
2006: S.639
2007: S.3664

 FISCAL IMPLICATIONS :;
None to the State.

 EFFECTIVE DATE :
Ninety days following enactment.

S1782A (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1782--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 6, 2009
                               ___________

Introduced by Sens. PARKER, DIAZ, HASSELL-THOMPSON, C. JOHNSON, KRUEGER,
  KRUGER,  MONTGOMERY, ONORATO, SAMPSON -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment -- recommitted to the Committee on Local Government in accordance
  with Senate Rule 6, sec. 8  --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

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

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph d of subdivision 1 of section 10 of the general
municipal law, as amended by chapter 623 of the laws of 1998, is amended
to read as follows:
  d. "Bank" shall mean a bank  as  defined  by  the  banking  law  or  a
national  banking  association  located and authorized to do business in
New York; A CREDIT UNION AS DEFINED BY THE  BANKING  LAW  OR  A  FEDERAL
CREDIT UNION LOCATED AND AUTHORIZED TO DO BUSINESS IN NEW YORK WHICH HAS
ITS  PRINCIPAL OFFICE IN A LOCATION DESCRIBED IN PARAGRAPH (A) OF SUBDI-
VISION THIRTY-SEVEN OF SECTION FOUR HUNDRED FIFTY-FOUR  OF  THE  BANKING
LAW,  OR  A  BRANCH  OFFICE  IN A LOCATION DESCRIBED IN PARAGRAPH (B) OF
SUBDIVISION THIRTY-SEVEN OF SECTION FOUR HUNDRED FIFTY-FOUR OF THE BANK-
ING LAW; OR A SAVINGS BANK AS DEFINED BY THE BANKING LAW, A SAVINGS  AND
LOAN  ASSOCIATION  AS  DEFINED  BY  THE BANKING LAW OR A FEDERAL SAVINGS
ASSOCIATION LOCATED AND AUTHORIZED TO DO BUSINESS IN NEW YORK WHICH  HAS
ITS  PRINCIPAL OFFICE IN A LOCATION DESCRIBED IN PARAGRAPH (A) OF SUBDI-
VISION TWO OF SECTION TWO HUNDRED THIRTY-SEVEN OF THE BANKING LAW, OR  A
BRANCH  OFFICE  IN  A LOCATION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION
TWO OF SECTION TWO HUNDRED THIRTY-SEVEN OF THE BANKING LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02399-03-0

S. 1782--A                          2

  S 2. Section 454 of the banking law is amended by adding a new  subdi-
vision 37 to read as follows:
  37.  (A)  TO  ACCEPT  DEPOSITS  FOR  CREDIT  TO A LOCAL GOVERNMENT, AS
DEFINED IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION TEN OF THE  GENERAL
MUNICIPAL LAW, AT ITS PRINCIPAL OFFICE WHERE SUCH CREDIT UNION MAINTAINS
ITS PRINCIPAL OFFICE WITHIN THE JURISDICTION OF SUCH LOCAL GOVERNMENT.
  (B) TO ACCEPT DEPOSITS FOR CREDIT TO A LOCAL GOVERNMENT, AS DEFINED IN
PARAGRAPH  A  OF SUBDIVISION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL
LAW, AT ITS BRANCH OFFICE WHERE SUCH CREDIT  UNION  MAINTAINS  A  BRANCH
OFFICE WITHIN THE JURISDICTION OF SUCH LOCAL GOVERNMENT.
  S  3. The banking law is amended by adding a new section 454-a to read
as follows:
  S 454-A. DEPOSITS OF PUBLIC MONEY WITH CREDIT  UNIONS;  SECURITY.    A
CREDIT  UNION MAY ACCEPT DEPOSITS OF PUBLIC MONEY SUBJECT TO THE LIMITA-
TIONS PROVIDED IN  SUBDIVISION  THIRTY-SEVEN  OF  SECTION  FOUR  HUNDRED
FIFTY-FOUR  OF  THIS  ARTICLE.  SUCH CREDIT UNION SHALL PLEDGE ASSETS OR
FURNISH OTHER SECURITY SATISFACTORY IN FORM AND AMOUNT TO THE DEPOSITOR,
FOR THE REPAYMENT OF MONIES HELD IN THE NAME  OF  SUCH  DEPOSITOR,  WHEN
REQUIRED TO BE SECURED BY APPLICABLE LAW, DECREE OR REGULATION.
  S  4.  Subdivision  2 of section 237 of the banking law, as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
  2. [No savings bank shall accept any deposit for credit to any munici-
pal corporation.] (A) A  SAVINGS  BANK  WHICH  MAINTAINS  ITS  PRINCIPAL
OFFICE  WITHIN A LOCAL GOVERNMENT, AS DEFINED IN PARAGRAPH A OF SUBDIVI-
SION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL LAW, MAY ACCEPT  DEPOS-
ITS AT SUCH PRINCIPAL OFFICE FOR CREDIT TO SUCH LOCAL GOVERNMENT.
  (B)  A  SAVINGS  BANK  WHICH  MAINTAINS A BRANCH OFFICE WITHIN A LOCAL
GOVERNMENT, AS DEFINED IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION  TEN
OF  THE GENERAL MUNICIPAL LAW, MAY ACCEPT DEPOSITS AT SUCH BRANCH OFFICE
FOR CREDIT TO SUCH LOCAL GOVERNMENT.
  S 5. Section 234 of the banking law is amended by adding a new  subdi-
vision 26 to read as follows:
  26. PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED THIRTY-SEVEN OF
THIS ARTICLE, TO PLEDGE ASSETS OR FURNISH OTHER SECURITY SATISFACTORY IN
FORM  AND  AMOUNT  TO THE DEPOSITOR, FOR THE REPAYMENT OF MONIES HELD IN
THE NAME OF SUCH DEPOSITOR, WHEN REQUIRED TO BE  SECURED  BY  APPLICABLE
LAW,  DECREE  OR  REGULATION  AND  TO  EXERCISE  THE POWERS CONTAINED IN
SECTION NINETY-SIX-B OF THIS CHAPTER.
  S 6. Section 383 of the banking law is amended by adding a new  subdi-
vision 17 to read as follows:
  17. PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED THIRTY-SEVEN OF
THIS CHAPTER, TO PLEDGE ASSETS OR FURNISH OTHER SECURITY SATISFACTORY IN
FORM  AND  AMOUNT  TO THE DEPOSITOR, FOR THE REPAYMENT OF MONIES HELD IN
THE NAME OF SUCH DEPOSITOR, WHEN REQUIRED TO BE  SECURED  BY  APPLICABLE
LAW,  DECREE  OR  REGULATION  AND  TO  EXERCISE  THE POWERS CONTAINED IN
SECTION NINETY-SIX-B OF THIS CHAPTER.
  S 7. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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The New York State Senate

senate Bill S1782A

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Your Voice

Actions

Votes

Mar 17, 2010 - Local Government committee Vote

Local Government Committee Vote: Mar 17, 2010

Bill Amendments

Co-Sponsors

S1782 - Details

S1782 - Summary

S1782 - Sponsor Memo

S1782 - Bill Text download pdf

Co-Sponsors

S1782A (ACTIVE) - Details

S1782A (ACTIVE) - Summary

S1782A (ACTIVE) - Sponsor Memo

S1782A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S1782A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Your Voice

Actions

Votes

Mar 17, 2010 - Local Government committee Vote

Local Government Committee Vote: Mar 17, 2010

Bill Amendments

Co-Sponsors

S1782 - Details

S1782 - Summary

S1782 - Sponsor Memo

S1782 - Bill Text download pdf

Co-Sponsors

S1782A (ACTIVE) - Details

S1782A (ACTIVE) - Summary

S1782A (ACTIVE) - Sponsor Memo

S1782A (ACTIVE) - Bill Text download pdf

Comments