Bill Text: NY A02613 | 2009-2010 | General Assembly | Amended

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Bill Title: Authorizes credit unions to participate in the excelsior linked deposit program and raises the limit on the amount permitted to be on deposit at any given time.

Spectrum: Strong Partisan Bill (Democrat 34-3)

Status: (Introduced - Dead) 2010-01-19 - print number 2613a [A02613 Detail]

Download: New_York-2009-A02613-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        2613--A
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 21, 2009
                                      ___________
       Introduced  by  M. of A. SWEENEY, ABBATE, KOON, DelMONTE, CLARK, JACOBS,
         ESPAILLAT, P. RIVERA, ORTIZ, PHEFFER, BOYLAND, PERALTA, COLTON, ROBIN-
         SON, FIELDS, KAVANAGH,  SCARBOROUGH,  STIRPE,  WEISENBERG,  GIBSON  --
         Multi-Sponsored  by -- M. of A. ALFANO, BARRA, BRENNAN, COOK, DESTITO,
         HEASTIE, HOOPER, JAFFEE, LIFTON, LUPARDO, MAYERSOHN, McDONOUGH, McENE-
         NY, MILLMAN, MORELLE, J. RIVERA, TOWNS -- read once  and  referred  to
         the  Committee  on  Banks  -- recommitted to the Committee on Banks in
         accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
         amended,  ordered reprinted as amended and recommitted to said commit-
         tee
       AN ACT to amend the state finance law and the banking law,  in  relation
         to  authorizing  credit  unions to participate in the excelsior linked
         deposit program
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph (b) of subdivision 14 of section 213 of the state
    2  finance  law,  as added by chapter 25 of the laws of 1995, is amended to
    3  read as follows:
    4    (b) any thrift OR CREDIT UNION which an  authorized  depositor  deter-
    5  mines  is eligible to accept linked deposits based upon criteria applied
    6  by the authorized depositor in making determinations under  section  one
    7  hundred  five  of  this  chapter, and which agrees to participate in the
    8  program, provided that any linked deposit in such thrift OR CREDIT UNION
    9  shall be secured in the same manner  as  moneys  deposited  pursuant  to
   10  section  one  hundred  five  of  this chapter and such thrifts OR CREDIT
   11  UNIONS shall pledge assets or furnish  other  security  satisfactory  in
   12  form and amount to the authorized depositor for the repayment of moneys.
   13  Until  April first, nineteen hundred ninety-six, in the determination of
   14  thrifts eligible to accept linked  deposits,  the  authorized  depositor
   15  shall  give  priority  to  applications by those thrifts seeking to make
   16  linked loans in economic development regions in  which  fewer  than  ten
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02778-02-0
       A. 2613--A                          2
    1  linked  loans  have been made on or before April first, nineteen hundred
    2  ninety-five. Provided, however, that the granting of such priority shall
    3  in no way relieve an authorized depositor of his or her duty  and  obli-
    4  gation  to  review all thrift applications from all economic development
    5  regions in the state on a timely basis.
    6    S 2. The closing paragraph of subdivision 15 of  section  213  of  the
    7  state  finance  law,  as  amended by chapter 291 of the laws of 2004, is
    8  amended to read as follows:
    9    This article and the related statutes that refer to  this  article  do
   10  not grant thrifts, CREDIT UNIONS, farm credit system institutions or the
   11  New  York  business development corporation eligibility to accept public
   12  funds or public moneys from public entities for investment purposes. For
   13  farm credit system institutions, the linked deposit program is available
   14  for loans with an agricultural purpose as defined by the farm credit act
   15  of nineteen hundred seventy-one, as amended and regulations  promulgated
   16  thereunder.  A  linked  deposit is intended to enable a lender to make a
   17  linked loan to an eligible business and such deposit earns a yield lower
   18  than posted rates in order to accomplish the goals of this article.
   19    S 3. Section 213 of the state finance law is amended by adding  a  new
   20  subdivision 24 to read as follows:
   21    24.  "CREDIT  UNION"  MEANS  ANY  CREDIT UNION CHARTERED UNDER ARTICLE
   22  ELEVEN OF THE BANKING LAW OR ANY FEDERAL CREDIT UNION.
   23    S 4. Section 454 of the banking law is amended by adding a new  subdi-
   24  vision 33-a to read as follows:
   25    33-A.  TO  ACCEPT MONEYS DEPOSITED BY THE COMMISSIONER OF TAXATION AND
   26  FINANCE OR THE COMPTROLLER AS LINKED  DEPOSITS  AND  MAKE  LINKED  LOANS
   27  PURSUANT  TO  ARTICLE  FIFTEEN  OF  THE  STATE FINANCE LAW AND TO PLEDGE
   28  ASSETS OR FURNISH OTHER SECURITY SATISFACTORY IN FORM AND AMOUNT TO  THE
   29  DEPOSITOR, FOR REPAYMENT OF SUCH MONEYS.
   30    S 5. This act shall take effect immediately.