S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7619
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 5, 2017
                                ___________
 
 Introduced  by  M.  of  A. ZEBROWSKI, LUPARDO, MOSLEY, GOTTFRIED, BLAKE,
   M. G. MILLER, COOK, STECK, HOOPER, FAHY, RA,  SKOUFIS  --  Multi-Spon-
   sored  by -- M. of A.  BARRETT, ENGLEBRIGHT, LOPEZ, McDONALD, SIMANOW-
   ITZ, SKARTADOS, THIELE -- read once and referred to the  Committee  on
   Banks

 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.
   § 2. Section 454 of the banking law is amended by adding a new  subdi-
 vision 38 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02898-01-7

 A. 7619                             2
 
   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
 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.
   §  3. The banking law is amended by adding a new section 454-a to read
 as follows:
   § 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.
   §  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.
   §  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.
   §  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.
   §  7.  This  act shall take effect on the ninetieth day after it shall
 have become a law.