Senate Bill S5806

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5806
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   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; OR A SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION,
 NATIONAL BANK, FEDERAL SAVINGS ASSOCIATION,  FEDERAL  CREDIT  UNION,  OR
 OUT-OF-STATE BANK, AS SUCH TERMS ARE DEFINED IN THE BANKING LAW, IN EACH
 CASE  HAVING  A  PRINCIPAL OR BRANCH OFFICE IN THIS STATE AND INSURED BY
 THE FEDERAL DEPOSIT INSURANCE CORPORATION,  THE  NATIONAL  CREDIT  UNION
 SHARE  INSURANCE  FUND,  OR A SUCCESSOR TO THE FEDERAL DEPOSIT INSURANCE
 CORPORATION OR THE NATIONAL CREDIT UNION SHARE INSURANCE FUND.
   § 2. Section 454 of the banking law is amended by adding a new  subdi-
 vision 38 to read as follows:
   38. 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 PROVIDED THAT 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.
   §  3.  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 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
 
 MUNICIPAL  CORPORATION,  PROVIDED  THAT  SUCH  SAVINGS BANK 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 DEPOS-
 ITOR,  WHEN  REQUIRED  TO  BE SECURED BY APPLICABLE LAW, DECREE OR REGU-
 LATION.
   § 4. Section 234 of the banking law is amended by adding a new  subdi-
 vision 27 to read as follows:
   27. 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.
   § 5. Section 383 of the banking law is amended by adding a new  subdi-
 vision 18 to read as follows:
   18. 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.
   § 6. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.