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

                                  4785

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  ROBACH -- 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  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-EIGHT  OF  SECTION FOUR HUNDRED FIFTY-FOUR OF THE BANKING
LAW, OR A BRANCH OFFICE IN A LOCATION  DESCRIBED  IN  PARAGRAPH  (B)  OF
SUBDIVISION THIRTY-EIGHT 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.
  S  2. Section 454 of the banking law is amended by adding a new subdi-
vision 38 to read as follows:
  38. (A) TO ACCEPT DEPOSITS  FOR  CREDIT  TO  A  LOCAL  GOVERNMENT,  AS
DEFINED  IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION TEN OF THE GENERAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07872-01-5

              

S. 4785                             2

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-EIGHT  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  THE  JURISDICTION  OF  A LOCAL GOVERNMENT, AS DEFINED IN
PARAGRAPH A OF SUBDIVISION ONE OF SECTION TEN OF THE  GENERAL  MUNICIPAL
LAW,  MAY  ACCEPT  DEPOSITS  AT SUCH PRINCIPAL OFFICE FOR CREDIT TO SUCH
LOCAL GOVERNMENT.
  (B) A SAVINGS BANK WHICH MAINTAINS A BRANCH OFFICE WITHIN  THE  JURIS-
DICTION  OF 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 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.
  S  6. 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.
  S  7.  This  act shall take effect on the ninetieth day after it shall
have become a law.