Bill Text: NY A07209 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to temporary investments by local governments.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2021-07-16 - signed chap.255 [A07209 Detail]

Download: New_York-2021-A07209-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7209

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     April 29, 2021
                                       ___________

        Introduced by M. of A. THIELE -- read once and referred to the Committee
          on Local Governments

        AN  ACT  to  amend  the general municipal law, in relation to authorized
          investments for local governments

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The opening paragraph of subparagraph 2 of paragraph a and
     2  subparagraph 2 of paragraph b of subdivision 3  of  section  11  of  the
     3  general  municipal law, the opening paragraph of subparagraph 2 of para-
     4  graph a as amended by section 1 of part W of chapter 406 of the laws  of
     5  1999  and subparagraph 2 of paragraph b as amended by chapter 130 of the
     6  laws of 1998, are amended to read as follows:
     7    notwithstanding any other provision of general, special or local  law,
     8  any  city  having a population of one million or more and any county may
     9  also make investments in the following:
    10    (2) Such obligations, unless registered or inscribed in  the  name  of
    11  the  local government, shall be purchased through, delivered to and held
    12  in the custody of a bank or trust company or, with respect to  the  city
    13  of  New  York  and  counties,  a reputable dealer in such obligations as
    14  shall be designated by the state comptroller, in this state. Such  obli-
    15  gations  shall be purchased, sold or presented for redemption or payment
    16  by such bank or trust company or dealer in obligations only  in  accord-
    17  ance  with  prior  written  authorization from the officer authorized to
    18  make the investment. All such transactions shall be confirmed in writing
    19  to the local government by the bank or trust  company.  All  obligations
    20  held  in  the  custody of a bank or trust company pursuant to this para-
    21  graph shall be held by such bank or trust company pursuant to a  written
    22  custodial  agreement as set forth in paragraph a of subdivision three of
    23  section ten of this article.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10942-01-1
        A. 7209                             2

     1    § 2. Paragraph b of subdivision 3 of section 11 of the general munici-
     2  pal law, as amended by chapter 548 of the laws of 1997,  is  amended  to
     3  read as follows:
     4    b. Such obligations, unless registered or inscribed in the name of the
     5  local  government,  shall be purchased through, delivered to and held in
     6  the custody of a bank or trust company or, with respect to the  city  of
     7  New  York  and counties, a reputable dealer in such obligations as shall
     8  be designated by the state comptroller, in this state. Such  obligations
     9  shall  be purchased, sold or presented for redemption or payment by such
    10  bank or trust company or dealer in obligations only in  accordance  with
    11  prior  written  authorization  from  the  officer authorized to make the
    12  investment. All such transactions shall be confirmed in writing  to  the
    13  local  government  by the bank or trust company. All obligations held in
    14  the custody of a bank or trust company pursuant to this paragraph  shall
    15  be  held  by  such bank or trust company pursuant to a written custodial
    16  agreement as set forth in paragraph a of subdivision  three  of  section
    17  ten of this article.
    18    §  3.  This  act  shall  take effect immediately, provided however the
    19  amendments to subdivision 3 of section 11 of the general  municipal  law
    20  made  by  section one of this act shall be subject to the expiration and
    21  reversion of such subdivision pursuant to section 2 of  chapter  130  of
    22  the  laws  of  1998,  as  amended, when upon such date the provisions of
    23  section two of this act shall take effect.