Bill Text: NY A00439 | 2019-2020 | General Assembly | Introduced
Bill Title: Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to banks [A00439 Detail]
Download: New_York-2019-A00439-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 439 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. STECK -- read once and referred to the Committee on Banks AN ACT to amend the general municipal law and the state finance 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: 1 Section 1. Paragraph c of subdivision 1 of section 10 of the general 2 municipal law, as amended by chapter 623 of the laws of 1998, is amended 3 to read as follows: 4 c. "Public deposits" shall mean deposits of public funds in a bank, 5 savings bank, savings and loan association, credit union, or trust 6 company which are available for all uses generally permitted by the 7 bank, savings bank, savings and loan association, credit union, or trust 8 company to the depositing local government for actually and finally 9 collected funds under the bank's, savings bank's, savings and loan asso- 10 ciation's, credit union's, or trust company's account agreement or poli- 11 cies. 12 § 2. Paragraphs f, g and h of subdivision 1 of section 10 of the 13 general municipal law are relettered paragraphs g, h and i and three new 14 paragraphs f, j and k are added to read as follows: 15 f. "Credit union" shall mean a state-chartered credit union as defined 16 by subdivision nine of section two of the banking law or a federally- 17 chartered credit union as defined by the Federal Credit Union Act, 18 located and authorized to do business in New York. 19 j. "Savings bank" shall mean a savings bank as defined by subdivision 20 four of section two of the banking law or any federal savings bank. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03608-01-9A. 439 2 1 k. "Savings and loan association" shall mean a savings and loan asso- 2 ciation as defined by subdivision eight of section two of the banking 3 law or any federal savings and loan association. 4 § 3. Subdivisions 2, 3 and 4 of section 10 of the general municipal 5 law, as amended by chapter 623 of the laws of 1998, paragraph a of 6 subdivision 2 as amended by chapter 128 of the laws of 2012, paragraphs 7 a and b of subdivision 3 as amended by chapter 545 of the laws of 2005, 8 paragraph c of subdivision 3 as amended by chapter 615 of the laws of 9 2002, and paragraph c of subdivision 2 and paragraph (e) of subdivision 10 4 as further amended by section 104 of part A of chapter 62 of the laws 11 of 2011, are amended to read as follows: 12 2. a. (i) The governing board of every local government shall desig- 13 nate one or more banks, savings banks, savings and loan associations, 14 credit unions or trust companies for the deposit of public funds, the 15 disposition of which is not otherwise provided for by law, received by 16 the chief fiscal officer or any other officer authorized by law to make 17 deposits. Such designation shall be by resolution of the governing board 18 or, in the case of a city, such other body as may be authorized or 19 required by law to designate depositaries. Such resolution shall specify 20 the maximum amount which may be kept on deposit at any time in each such 21 bank, savings banks, savings and loan associations, credit unions or 22 trust company. Such designations and amounts may be changed at any time 23 by further resolution. The governing board of every local government 24 shall forward a copy of such resolution to the office of the state comp- 25 troller who shall retain such copy until such resolution is amended or 26 dissolved. A copy of such resolution shall be retained by the state 27 comptroller for record keeping purposes only. 28 (ii) The governing board of a local government that has designated one 29 or more banks, savings banks, savings and loan associations, credit 30 unions or trust companies for the deposit of public funds pursuant to 31 subparagraph (i) of this paragraph may, in its discretion, authorize the 32 designated bank, savings bank, savings and loan association, credit 33 union or trust company to arrange for the redeposit of the local govern- 34 ment's funds in one or more banking institutions, as defined in section 35 nine-r of the banking law, for the account of the local government, 36 through a deposit placement program that meets all of the following 37 conditions: 38 (A) On or after the date that the local government's funds are 39 received, the designated bank, savings bank, savings and loan associ- 40 ation, credit union or trust company (I) arranges for the redeposit of 41 such funds into deposit accounts in one or more banking institutions and 42 (II) serves as custodian for the local government with respect to the 43 funds redeposited into such accounts. 44 (B) Local government funds deposited in a designated bank, savings 45 bank, savings and loan association, credit union or trust company in 46 accordance with this subparagraph and held in the designated bank, 47 savings bank, savings and loan association, credit union or trust compa- 48 ny in excess of the amount insured by the federal deposit insurance 49 corporation pending redeposit of the funds pursuant to this subparagraph 50 shall be secured in accordance with subdivision three of this section. 51 (C) The full amount of local government funds redeposited by the 52 designated bank, savings bank, savings and loan association, credit 53 union or trust company into deposit accounts in banking institutions 54 pursuant to this subparagraph (plus accrued interest, if any) shall be 55 insured by the federal deposit insurance corporation.A. 439 3 1 (D) At the same time that the money of the local government is rede- 2 posited pursuant to this subparagraph, the selected depository receives 3 an amount of deposits from customers of other financial institutions 4 pursuant to the deposit placement program that are at least equal to the 5 amount of the local government's funds redeposited by the designated 6 bank, savings bank, savings and loan association, credit union or trust 7 company. 8 b. Except as otherwise provided by law, all deposits shall be made to 9 the credit of the local government. The deposit of public funds pursuant 10 to this subdivision shall release the officer making the deposit and his 11 or her surety from any liability for loss of such public funds by reason 12 of the default or insolvency of any such bank, savings bank, savings and 13 loan association, credit union or trust company. 14 c. The governing board of a local government, in which a banking 15 development district has been designated by the superintendent of finan- 16 cial services pursuant to section ninety-six-d of the banking law, may 17 designate a bank, savings bank, savings and loan association, credit 18 union, trust company or national bank located in such district for the 19 deposit of public funds, the disposition of which is not otherwise 20 provided for by law, received by the chief fiscal officer or other offi- 21 cer authorized by law to make such deposits. Such designation shall be 22 by resolution of the governing board or, in the case of a city, such 23 other body as may be authorized or required by law to designate deposi- 24 tories. Such resolution shall specify the maximum amount which may be 25 kept on deposit at any time with such bank, savings bank, savings and 26 loan association, credit union, trust company or national bank located 27 in such district. The governing board of every local government shall 28 forward a copy of such resolution to the office of the state comptroller 29 who shall retain such copy until such resolution is amended or 30 dissolved. A copy of such resolution shall be retained by the state 31 comptroller for record keeping purposes only. Subject to an agreement 32 between such governing board and such banking institution, public funds 33 deposited in such banking institution may earn a fixed interest rate 34 which is at or below such banking institution's posted two year certif- 35 icate of deposit rate. In those instances where there is such an agree- 36 ment, its terms and conditions shall also be specified in the resol- 37 ution. Any such designation, amount, or agreement provisions may be 38 changed at any time by further resolution. 39 d. Notwithstanding any provision of law to the contrary, no bank, 40 savings bank, savings and loan association or credit union shall be 41 designated for deposits of funds pursuant to the provisions of this 42 section or section eleven of this article unless the taxes described in 43 subdivision one of section two hundred fifty-three of the tax law are 44 paid on loans secured by mortgages that are provided by any such bank, 45 savings bank, savings and loan association or credit union. Any funds 46 deposited in any such bank, savings bank, savings and loan association 47 or credit union shall be withdrawn in accordance with the terms of any 48 deposit agreement if such taxes were not paid at the time any such mort- 49 gages were recorded. 50 3. All public deposits in excess of the amount insured under the 51 provisions of the Federal Deposit Insurance Act or by the National Cred- 52 it Union Administration under the Federal Credit Union Act as now or 53 hereafter amended shall be secured in accordance with this subdivision: 54 a. The officers making a deposit may accept a pledge of eligible secu- 55 rities having in the aggregate a market value at least equal to the 56 aggregate amount of public deposits from such officers, or a pledge of aA. 439 4 1 pro rata portion of a pool of eligible securities having in the aggre- 2 gate a market value at least equal to the aggregate amount of public 3 deposits from all such officers within the state at such bank, savings 4 bank, savings and loan association, credit union or trust company, 5 together with a security agreement from the bank, savings bank, savings 6 and loan association, credit union or trust company. The security agree- 7 ment and custodial agreement referred to below may be the same agreement 8 including when the bank, savings bank, savings and loan association, 9 credit union or trust company holding the public deposits holds the 10 collateral for the public body. The security agreement shall provide 11 that such eligible securities or pro rata portion of a pool of eligible 12 securities are being pledged by the bank or trust company as security 13 for the public deposits, together with agreed upon interest, if any, and 14 any costs or expenses arising out of the collection of such deposit upon 15 a default. It shall also provide for the conditions under which the 16 securities or pro rata portion of a pool of eligible securities held may 17 be sold, presented for payment, substituted or released and the events 18 of default which will enable the local government to exercise its rights 19 against the pledged securities. Such agreement shall include all 20 provisions deemed necessary and sufficient to secure in a satisfactory 21 manner the local government's interest in the collateral. The custodial 22 agreement shall provide that the pledged securities or pro rata portion 23 of a pool of eligible securities will be held by the custodial bank, 24 savings bank, savings and loan association, credit union or trust compa- 25 ny as agent of, and custodian for, the local government, and will be 26 kept separate and apart from the general assets of the custodial bank, 27 savings bank, savings and loan association, credit union or trust compa- 28 ny and it shall also provide for the manner in which the custodial bank, 29 savings bank, savings and loan association, credit union or trust compa- 30 ny shall confirm the receipt, substitution or release of the collateral. 31 Such agreement shall provide for the frequency of revaluation of collat- 32 eral by the custodial bank, savings bank, savings and loan association, 33 credit union or trust company and the substitution of collateral when a 34 change in the rating of a security causes ineligibility pursuant to 35 paragraph [f] g of subdivision one of this section. Such agreement shall 36 include all provisions deemed necessary and sufficient to secure in a 37 satisfactory manner the local government's interest in the collateral. 38 Such agreement may also contain such other provisions as the governing 39 board may deem necessary. 40 b. Whenever eligible securities delivered to a custodial bank, savings 41 bank, savings and loan association, credit union or trust company pursu- 42 ant to this paragraph are transferred by entries on the books of a 43 federal reserve bank or other book-entry system operated by a federally 44 regulated entity without physical delivery of the evidence of such obli- 45 gations, the records of the custodial bank, savings bank, savings and 46 loan association, credit union or trust company shall show, at all 47 times, the interest of the local government in such securities or pro 48 rata portion of a pool of eligible securities as set forth in the secu- 49 rity agreement. 50 c. (i) In lieu of or in addition to the deposit of eligible securi- 51 ties, the officers making a deposit may accept an eligible surety bond 52 payable to such local government as security for the payment of one 53 hundred percent, or an eligible letter of credit payable to such local 54 government as security for the payment of one hundred forty percent, of 55 the aggregate amount of public deposits from such officers and theA. 439 5 1 agreed upon interest, if any. The terms and conditions of any eligible 2 surety bond shall be approved by the governing board. 3 (ii) In lieu of or in addition to the deposit of eligible securities, 4 the officers making a deposit may, in the case of an irrevocable letter 5 of credit issued in favor of the local government by a federal home loan 6 bank whose commercial paper and other unsecured short-term debt obli- 7 gations are rated in the highest rating category by at least one 8 nationally recognized statistical rating organization, accept such 9 letter of credit payable to such local government as security for the 10 payment of one hundred percent of the aggregate amount of public depos- 11 its from such officers and the agreed upon interest, if any. 12 d. For purposes of determining the market value of securities as 13 required by this subdivision: 14 (i) The eligible securities described in subparagraphs (viii), (x) and 15 (xi) of paragraph [f] g of subdivision one of this section shall be 16 valued at eighty percent of their market value. 17 (ii) The eligible securities described in subparagraph (ix) of para- 18 graph [f] g of subdivision one of this section shall be valued at seven- 19 ty percent of their market value. 20 (iii) Of the eligible securities described in subparagraphs (v), (vi) 21 and (vii) of paragraph [f] g of subdivision one of this section, those 22 securities rated in the highest category shall be valued at one hundred 23 percent of their market value; those securities rated in the second 24 highest rating category shall be valued at ninety percent of their 25 market value; and those securities rated in the third highest rating 26 category shall be valued at eighty percent of their market value. When 27 two nationally recognized statistical rating organizations rate a secu- 28 rity in two different categories, the security shall be considered to be 29 rated in the higher of the two categories. 30 4. (a) Notwithstanding any other provision of law to the contrary, the 31 chief fiscal officer, or other officer authorized by law to make depos- 32 its, may, subject to the approval of the governing body of a local 33 government, by resolution, enter into a contract with a courier service 34 for the purpose of causing the deposit of public funds with a bank, 35 savings bank, savings and loan association, credit union or trust compa- 36 ny as provided in this section. 37 (b) The entrusting of public funds for deposit pursuant to paragraph 38 (a) of this subdivision shall release the officer entrusting the public 39 funds to the courier service and his or her surety from any liability 40 for loss of such public funds by the courier service in the process of 41 delivering such public funds to the designated bank, savings bank, 42 savings and loan association, credit union or trust company. 43 (c) The local government authorizing the deposit of public funds by a 44 courier service pursuant to paragraph (a) of this subdivision shall 45 require the courier service to obtain a surety bond for the full amount 46 entrusted to the courier, payable to the local government and executed 47 by an insurance company authorized to do business in this state, the 48 claims paying ability of which is rated in the highest rating category 49 by at least two nationally recognized statistical rating organizations, 50 to insure against any loss of public funds entrusted to the courier 51 service for deposit or failure to deposit the full amount entrusted to 52 the courier. 53 (d) A deposit made by a courier on behalf of a local government shall 54 be deemed to be a deposit made by the chief fiscal officer or other 55 officer entrusting such funds for purposes of the requirements contained 56 in this section for securing public deposits.A. 439 6 1 (e) A bank, savings bank, savings and loan association, credit union 2 or trust company may, from time to time and as agreed upon with a local 3 government, reimburse all or part of, but not more than, the actual cost 4 incurred by the local government in transporting cash, negotiable 5 instruments or other items for deposit through a courier service. Any 6 such reimbursement agreement shall apply only to a specified deposit 7 transaction, and may be subject to such terms, conditions and limita- 8 tions as the bank, savings bank, savings and loan association, credit 9 union or trust company deems necessary to ensure sound banking prac- 10 tices, including, but not limited to, any terms, conditions or limita- 11 tions that may be required by the department of financial services or 12 other federal or state authority. 13 § 4. Subdivision 2 of section 11 of the general municipal law, as 14 amended by chapter 128 of the laws of 2012, is amended to read as 15 follows: 16 2. a. The governing board of any local government or, if the governing 17 board so delegates, the chief fiscal officer or other officer having 18 custody of the moneys may temporarily invest moneys not required for 19 immediate expenditure, except moneys the investment of which is other- 20 wise provided for by law, either: (1) in special time interest-bearing 21 deposit accounts in, or certificates of deposit issued by, a bank, 22 savings bank, savings and loan association, credit union or trust compa- 23 ny located and authorized to do business in this state; or (2) in 24 accordance with all of the following conditions: 25 (i) the moneys are invested through a bank, savings bank, savings and 26 loan association, credit union or trust company located and authorized 27 to do business in this state; 28 (ii) the bank, savings bank, savings and loan association, credit 29 union or trust company arranges for the deposit of the moneys in certif- 30 icates of deposit in one or more banking institutions, as defined in 31 section nine-r of the banking law, for the account of the local govern- 32 ment; 33 (iii) the full amount of principal and accrued interest of each such 34 certificate of deposit must be insured by the federal deposit insurance 35 corporation; 36 (iv) the bank, savings bank, savings and loan association, credit 37 union or trust company acts as custodian for the local government with 38 respect to such certificates of deposit issued for the local govern- 39 ment's account; and 40 (v) at the same time that the local government's moneys are deposited 41 and the certificates of deposit are issued for the account of the local 42 government, the bank, savings bank, savings and loan association, credit 43 union or trust company receives an amount of deposits from customers of 44 other financial institutions equal to or greater than the amount of the 45 moneys invested by the local government through the bank or trust compa- 46 ny. 47 b. For any investment made pursuant to paragraph a of this subdivi- 48 sion, such time interest-bearing deposit account or certificate of 49 deposit shall be payable within such time as the proceeds shall be need- 50 ed to meet expenditures for which such moneys were obtained and provided 51 further that such time interest-bearing deposit account or certificate 52 of deposit be secured in the same manner as is provided for securing 53 deposits of public funds by subdivision three of section ten of this 54 article. 55 § 5. Subdivision 1 and the opening paragraph of subdivision 2 of 56 section 105 of the state finance law, subdivision 1 as amended by chap-A. 439 7 1 ter 204 of the laws of 2002 and the opening paragraph of subdivision 2 2 as amended by chapter 154 of the laws of 1953, are amended and two new 3 subdivisions 7 and 8 are added to read as follows: 4 1. All moneys received by the commissioner of taxation and finance on 5 account of the state, excepting such moneys as are required by law to be 6 deposited to the credit of the comptroller, but including such moneys as 7 are thereafter paid into the state treasury by the comptroller, shall be 8 deposited by the commissioner of taxation and finance within three days 9 after the receipt thereof, either as a demand deposit or an interest- 10 bearing [time] deposit (other than a time certificate of deposit), as he 11 or she and the comptroller may determine, in such banks, trust companies 12 [and industrial banks], savings banks, savings and loan associations or 13 credit unions as in his or her opinion and the opinion of the comp- 14 troller are secure. The moneys so deposited shall be placed to the 15 account of the commissioner of taxation and finance. He or she shall 16 keep a bankbook in which shall be entered his or her account of deposit 17 in and moneys drawn from the banks [and], trust companies [and indus-18trial banks], savings banks, savings and loan associations or credit 19 unions in which deposits are made by him or her, which he or she shall 20 exhibit to the comptroller for his or her inspection on the first Tues- 21 day of every month and oftener if required. He or she shall not draw any 22 moneys from such banks, trust companies [or industrial banks unless by23checks signed and countersigned], savings banks, savings and loan asso- 24 ciations or credit unions designated in the manner prescribed by section 25 one hundred one of this article, unless otherwise provided by law. No 26 moneys shall be paid by any such bank, trust company [or industrial27bank], savings bank, savings and loan association or credit union out of 28 any such deposit except upon such checks. Moneys may be paid through 29 electronic transfer in accordance with procedures developed by the 30 commissioner of taxation and finance and the comptroller and consistent 31 with the requirements of this section for recording payments. Such 32 payments through electronic transfer shall be considered, for purposes 33 of this chapter, to be moneys drawn by check. Every such bank, trust 34 company [or industrial bank], savings bank, savings and loan association 35 or credit union shall transmit to the comptroller monthly statements of 36 all moneys received and paid by it on account of the commissioner of 37 taxation and finance. 38 Every bank, trust company [and industrial bank], savings bank, savings 39 and loan association or credit union designated for the deposit of state 40 moneys under the provisions of this section shall, before deposits are 41 made: 42 7. Public funds deposited into a savings bank, federal savings bank, 43 credit union, federal credit union, savings and loan association or 44 federal savings and loan association, shall be limited to one million 45 dollars per savings bank, federal savings bank, credit union, federal 46 credit union, savings and loan association or federal savings and loan 47 association. 48 8. For purposes of this section, the terms "credit union", "savings 49 bank" and "savings and loan association" shall have the meaning provided 50 in subdivision one of section ten of the general municipal law. 51 § 6. Section 106 of the state finance law, as amended by chapter 155 52 of the laws of 2012 and subdivision D as added by chapter 128 of the 53 laws of 2012, is amended to read as follows: 54 § 106. Deposit of moneys by state officers, state institutions and 55 charitable and benevolent institutions. 1. Such moneys received by the 56 commissioner of taxation and finance as are now deposited to the creditA. 439 8 1 of the comptroller pursuant to statute, and thereafter paid into the 2 state treasury, shall be deposited by him or her to the credit of the 3 comptroller in such bank [or], trust company, savings bank, savings and 4 loan association or credit union, as shall be designated by the comp- 5 troller at such rate of interest, if any, as shall be agreed upon by the 6 depositary and the comptroller. 7 2. All other moneys received by the commissioner of taxation and 8 finance except as provided in section one hundred five of this article 9 and all moneys received by any other state officer or other person 10 receiving moneys belonging to the state, or for which such state officer 11 or other person may be responsible in his or her official capacity, and 12 all moneys received by any state institution, except for moneys received 13 pursuant to a clinical practice plan established pursuant to subdivision 14 fourteen of section two hundred six of the public health law and all 15 moneys received from the state by any charitable or benevolent institu- 16 tion supported in whole or in part by the state, shall be deposited to 17 his, her, or its credit in such bank [or], trust company, savings bank, 18 savings and loan association or credit union, as shall be designated by 19 the comptroller at such rate of interest, if any, as shall be agreed 20 upon by the depositary and the comptroller. 21 3. Every [bank or trust company] depositary designated by the comp- 22 troller for the deposit of any such moneys 23 [A.] a. Shall give a bond with sufficient sureties for the security of 24 such deposit, to be approved by the comptroller and filed in his or her 25 office, 26 [B.] b. Or shall, in lieu of such surety bond, with the permission of 27 the comptroller deposit with the comptroller such outstanding unmatured 28 bonds or notes or such certified check or checks as are described in 29 section one hundred five of this article. The comptroller may, in his or 30 her discretion, accept and substitute for any surety bond or undertaking 31 given, pursuant to this section, a bond or undertaking in such form and 32 with other surety or sureties, or other security as required by this 33 section, for such sums as may be prescribed and approved by the comp- 34 troller for the safe keeping and prompt payment of such moneys on legal 35 demand therefor with interest, if any, and the comptroller may thereupon 36 execute and deliver to the surety or sureties, upon the former bond or 37 undertaking, a release of such surety or sureties from any liability 38 accruing subsequent to the date of such release. Such release shall not 39 relieve such surety or sureties from any obligation for losses incurred 40 prior to the date thereof. On the withdrawal of all moneys from any such 41 depository and a closing and settlement of the account thereof, the 42 comptroller may in his or her discretion certify to such settlement and 43 release to the obligor or owner or owners entitled thereto, of such 44 surety bond, undertaking, certified check or checks, or other security 45 deposited with him or her. 46 [C.] c. Notwithstanding any other provisions of this section, the 47 comptroller shall not designate for the deposit of moneys by state offi- 48 cers, state institutions and charitable and benevolent institutions 49 supported in whole or in part by the state a banking institution to 50 which the Community Reinvestment Act of 1977, United States P.L. 95-128, 51 applies unless such institution shall have received a record of perform- 52 ance no lower than "satisfactory" as determined under such act in 53 accordance with section twenty-eight-b of the banking law. 54 [D.] d. In lieu of a security bond as prescribed under [subdivision A] 55 paragraph a of this [section] subdivision or other security as 56 prescribed under [subdivision B] paragraph b of this [section] subdivi-A. 439 9 1 sion, the comptroller may authorize a designated bank or trust company 2 to arrange for the redeposit of the moneys through a deposit placement 3 program that meets all of the following conditions: 4 (1) The designated bank or trust company arranges for the redeposit of 5 the moneys into deposit accounts with one or more banking institutions, 6 as defined in section nine-r of the banking law, for the account of the 7 state, and serves as custodian for the state with respect to the moneys 8 redeposited into such deposit accounts. 9 (2) Moneys held by a designated bank or trust company pending redepos- 10 it pursuant to paragraph one of this subdivision that are in excess of 11 the amount insured by the federal deposit insurance corporation shall be 12 secured in accordance with [subdivision A or B] paragraph a or b of this 13 [section] subdivision. 14 (3) The full amount of the moneys redeposited into deposit accounts 15 pursuant to paragraph one of this subdivision, plus accrued interest, if 16 any, shall be insured by the federal deposit insurance corporation. 17 (4) At the same time that the moneys are redeposited pursuant to para- 18 graph one of this subdivision, the designated bank or trust company 19 receives an amount of deposits from customers of other financial insti- 20 tutions pursuant to the deposit placement program that are at least 21 equal to the amount of the moneys redeposited by the designated bank or 22 trust company. 23 4. This section shall not apply to any funds held by the superinten- 24 dent of financial services in a fiduciary capacity. 25 5. Public funds deposited into a savings bank, federal savings bank, 26 credit union, federal credit union, savings and loan association or 27 federal savings and loan association, shall be limited to one million 28 dollars per savings bank, federal savings bank, credit union, federal 29 credit union, savings and loan association or federal savings and loan 30 association. 31 6. For purposes of this section, the terms "credit union", "savings 32 bank" and "savings and loan association" shall have the meaning provided 33 in subdivision one of section ten of the general municipal law. 34 § 7. Severability. If any clause, sentence, paragraph, section or part 35 of this act shall be adjudged by any court of competent jurisdiction to 36 be invalid, such judgment shall not affect, impair or invalidate such 37 clause, sentence, paragraph, section or part thereof directly involved 38 in the controversy in which such judgment shall have been rendered. 39 § 8. This act shall take effect immediately.
