Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and 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.
Summary
Bill A03539 aims to amend the general municipal law and banking law in New York to establish a municipal deposit program that allows local governments to deposit public funds in savings banks, savings and loan associations, and credit unions. The bill defines key terms related to these financial institutions and outlines the procedures for local governments to designate banks for public fund deposits. It also allows for the redeposit of local government funds through designated banks into other banking institutions while ensuring that these funds are secured and insured appropriately.
Impact
The bill will significantly impact how local governments in New York manage their public funds by expanding the types of financial institutions where these funds can be deposited. It introduces new definitions and requirements for credit unions and savings banks, ensuring that they adhere to specific security measures when handling public money. This change aims to enhance the safety and accessibility of public funds while potentially increasing competition among financial institutions for municipal deposits.
Sentiment
The general sentiment surrounding Bill A03539 appears to be supportive, as it seeks to modernize and improve the management of public funds by local governments. However, there may be concerns regarding the security measures and the implications for smaller financial institutions that may struggle to meet the new requirements.
Contention
Notable points of contention may arise regarding the security requirements imposed on credit unions and savings banks, particularly how these institutions will manage the risks associated with accepting public deposits. Some stakeholders may argue that the new regulations could disproportionately affect smaller banks and credit unions, limiting their ability to compete for municipal deposits.
Same As
Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and 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.
Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and 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.
Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.
Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.