Bill Text: NY S03616 | 2015-2016 | General Assembly | Introduced


Bill Title: Relates to credit unions.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2016-06-08 - REPORTED AND COMMITTED TO RULES [S03616 Detail]

Download: New_York-2015-S03616-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3616
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 13, 2015
                                      ___________
       Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
         printed to be committed to the Committee on Banks
       AN ACT to amend the banking law and the state finance law,  in  relation
         to credit unions
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The banking law is amended by adding a new article  2-D  to
    2  read as follows:
    3                                 ARTICLE 2-D
    4                        CREDIT UNION DEPOSIT PROGRAM
    5  SECTION 89. CREDIT UNION DEPOSIT PROGRAM; PURPOSE.
    6          90. ELIGIBILITY.
    7          91. DEPOSITS.
    8    S  89.  CREDIT  UNION  DEPOSIT PROGRAM; PURPOSE. IN RECOGNITION OF THE
    9  ECONOMIC BENEFITS AND STIMULUS WHICH RESULT FROM THE PLACEMENT OF DEPOS-
   10  ITS IN LOCAL CREDIT UNIONS, THE CREDIT UNION DEPOSIT PROGRAM  IS  HEREBY
   11  CREATED TO AUTHORIZE AND ENCOURAGE THE STATE COMPTROLLER AND THE COMMIS-
   12  SIONER  OF  TAXATION AND FINANCE TO DEPOSIT A PORTION OF THE FUNDS UNDER
   13  THEIR CONTROL INTO CREDIT UNIONS.
   14    S 90. ELIGIBILITY. 1. TO BE ELIGIBLE TO RECEIVE DEPOSITS, OR TO  RENEW
   15  EXISTING  DEPOSITS  UNDER THIS PROGRAM, A CREDIT UNION MUST BE CHARTERED
   16  UNDER THE PROVISIONS OF THIS CHAPTER AND MUST HAVE A CURRENT EXAMINATION
   17  RATING OF SATISFACTORY OR BETTER. THE SUPERINTENDENT SHALL, IF REQUESTED
   18  BY THE STATE COMPTROLLER OR THE COMMISSIONER OF  TAXATION  AND  FINANCE,
   19  CONFIRM  WHETHER  A PARTICULAR CREDIT UNION MEETS THE CRITERIA SPECIFIED
   20  IN THIS SECTION.
   21    2. A FEDERAL CREDIT UNION MAY ALSO BE ELIGIBLE TO RECEIVE DEPOSITS, OR
   22  TO RENEW EXISTING DEPOSITS, UNDER THIS PROGRAM  IF:  (A)  ITS  PRINCIPAL
   23  OFFICE IS LOCATED IN THIS STATE; (B) IT HAS A CURRENT EXAMINATION RATING
   24  OF  SATISFACTORY  OR  BETTER;  AND  (C) IT MEETS ANY ADDITIONAL CRITERIA
   25  ESTABLISHED BY THE COMPTROLLER AND  THE  COMMISSIONER  OF  TAXATION  AND
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00760-01-5
       S. 3616                             2
    1  FINANCE  TO DETERMINE ELIGIBILITY FOR PARTICIPATION IN THE PROGRAM. SUCH
    2  CRITERIA MAY INCLUDE A CREDIT UNION'S LOAN TO DEPOSIT RATIO, ITS  RECORD
    3  OF SMALL BUSINESS LENDING, AND THE IMPACT SUCH DEPOSITS WOULD HAVE ON AN
    4  AREA'S ECONOMIC ACTIVITY.
    5    S  91.  DEPOSITS.  1.  NOTWITHSTANDING  ANY  PROVISIONS  OF LAW TO THE
    6  CONTRARY, THE STATE COMPTROLLER AND THE  COMMISSIONER  OF  TAXATION  AND
    7  FINANCE  SHALL,  FOR  THE PURPOSES OF ADMINISTERING MONEYS IN ACCORDANCE
    8  WITH THE PROVISIONS OF SECTIONS NINETY-EIGHT-A AND ONE HUNDRED  FIVE  OF
    9  THE STATE FINANCE LAW, GIVE CONSIDERATION TO DEPOSITING FUNDS INTO THOSE
   10  CREDIT  UNIONS WHICH ARE DEEMED ELIGIBLE TO RECEIVE DEPOSITS PURSUANT TO
   11  SECTION NINETY OF THIS ARTICLE.
   12    2. THE MAXIMUM AMOUNT OF FUNDS WHICH THE  STATE  COMPTROLLER  AND  THE
   13  COMMISSIONER  OF  TAXATION  AND  FINANCE  MAY DEPOSIT UNDER THIS PROGRAM
   14  SHALL NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS EACH.
   15    3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY  DEPOSITS
   16  MADE PURSUANT TO THIS ARTICLE SHALL BE MADE AT RATES, AND FOR SUCH PERI-
   17  ODS OF TIME, AS MAY BE AGREED TO BY THE STATE COMPTROLLER OR THE COMMIS-
   18  SIONER OF TAXATION AND FINANCE AND THE ELIGIBLE CREDIT UNION.
   19    4.  ANY  DEPOSITS  MADE  PURSUANT TO THIS ARTICLE MAY BE SECURED BY AN
   20  IRREVOCABLE LETTER OF CREDIT ISSUED BY A FEDERAL HOME LOAN BANK.
   21    S 2. The banking law is amended by adding a new section 454-a to  read
   22  as follows:
   23    S  454-A.  DEPOSITS OF PUBLIC MONEY WITH CREDIT UNIONS. A CREDIT UNION
   24  MAY ACCEPT DEPOSITS OF PUBLIC MONEY IN ACCORDANCE WITH THE PROVISIONS OF
   25  SECTION NINETY-ONE OF THIS CHAPTER AND SECTIONS NINETY-EIGHT-A  AND  ONE
   26  HUNDRED FIVE OF THE STATE FINANCE LAW.
   27    S  3.  The  opening  paragraph of subdivision 1 of section 98-a of the
   28  state finance law, as amended by chapter 545 of the  laws  of  2005,  is
   29  amended to read as follows:
   30    Except  as  otherwise provided in subdivision two of this section, any
   31  moneys in the general fund of the state or moneys received from the sale
   32  of any bonds or notes issued by the state, any moneys  in  any  fund  or
   33  account  of  the state, heretofore or hereafter established, the invest-
   34  ment of which is not otherwise authorized and which are not  immediately
   35  required  may  be  invested  by  the  comptroller.    Such moneys may be
   36  invested only in obligations of the categories specified in subdivisions
   37  one to five, both inclusive, and subdivision  seven,  subdivision  four-
   38  teen,  as  added by chapters seven hundred ninety-seven and nine hundred
   39  thirty-two of the laws of nineteen  hundred  sixty-three,  respectively,
   40  subdivisions  fifteen,  sixteen and seventeen of section ninety-eight of
   41  this article, maturing or redeemable at the option of the holder  within
   42  twelve  years  of the date of such investment, subdivisions two-a, eigh-
   43  teen, nineteen and twenty of section ninety-eight of this article or  in
   44  a  certificate  of deposit of a bank [or], trust company OR CREDIT UNION
   45  in this state. Any certificate of deposit shall be fully secured by  the
   46  issuer  thereof  depositing with the comptroller stocks, bonds, or notes
   47  of any county, town, city, village, fire district or school district  of
   48  this  state  issued  pursuant to law and maturing within five years from
   49  the date of issuance of such certificate of deposit, bonds or  notes  or
   50  direct  or  guaranteed obligation of the United States of America or its
   51  agencies or of the state of New York or bonds and notes issued  for  any
   52  of  the  corporate  purposes of the municipal assistance corporation for
   53  the city of New York in an amount equal to the amount  of  such  certif-
   54  icate  of deposit. Any bonds, notes or certificates of deposit purchased
   55  with moneys of the general fund shall be available  always  to  pay  any
   56  lawful  appropriation  in  force.  Any  bonds,  notes or certificates of
       S. 3616                             3
    1  deposit purchased with moneys received from the sale  of  any  bonds  or
    2  notes  issued by the state shall be available always for the purposes or
    3  purpose for which such bonds or notes were issued.  Any bonds, notes  or
    4  certificates  of  deposit purchased with moneys of any other funds shall
    5  be available always for the purpose for which  such  fund  was  created.
    6  Unless otherwise required by law, income received on any moneys invested
    7  pursuant  to  this  section  shall be credited to the fund or funds from
    8  which such moneys were invested, provided, however, the  comptroller  is
    9  hereby  precluded  from  crediting  interest  earnings to funds/accounts
   10  which:
   11    S 4. Subdivisions 1 and 2 of section 105 of  the  state  finance  law,
   12  subdivision 1 as amended by chapter 204 of the laws of 2002, subdivision
   13  2 as amended by chapter 154 of the laws of 1953, paragraph b of subdivi-
   14  sion  2  as  amended  by chapter 345 of the laws of 2005, are amended to
   15  read as follows:
   16    1. All moneys received by the commissioner of taxation and finance  on
   17  account of the state, excepting such moneys as are required by law to be
   18  deposited to the credit of the comptroller, but including such moneys as
   19  are thereafter paid into the state treasury by the comptroller, shall be
   20  deposited  by the commissioner of taxation and finance within three days
   21  after the receipt thereof, either as a demand deposit  or  an  interest-
   22  bearing  time  deposit (other than a time certificate of deposit), as he
   23  and the comptroller may determine, in such banks, trust companies [and],
   24  industrial banks AND CREDIT UNIONS as in his opinion and the opinion  of
   25  the  comptroller  are secure. The moneys so deposited shall be placed to
   26  the account of the commissioner of taxation and finance. He shall keep a
   27  bankbook in which shall be entered his account of deposit in and  moneys
   28  drawn  from  the  banks  and trust companies [and], industrial banks AND
   29  CREDIT UNIONS in which deposits are made by him, which he shall  exhibit
   30  to  the  comptroller  for  his  inspection on the first Tuesday of every
   31  month and oftener if required. He shall not draw any  moneys  from  such
   32  banks, trust companies [or], industrial banks OR CREDIT UNIONS unless by
   33  checks  signed and countersigned in the manner prescribed by section one
   34  hundred one, unless otherwise provided by law. No moneys shall  be  paid
   35  by  any  such  bank, trust company [or], industrial bank OR CREDIT UNION
   36  out of any such deposit except upon such checks.   Moneys  may  be  paid
   37  through  electronic  transfer in accordance with procedures developed by
   38  the commissioner  of  taxation  and  finance  and  the  comptroller  and
   39  consistent with the requirements of this section for recording payments.
   40  Such  payments  through  electronic  transfer  shall  be considered, for
   41  purposes of this chapter, to be moneys drawn by check.  Every such bank,
   42  trust company [or], industrial bank OR CREDIT UNION  shall  transmit  to
   43  the comptroller monthly statements of all moneys received and paid by it
   44  on account of the commissioner of taxation and finance.
   45    2.  Every  bank, trust company [and], industrial bank AND CREDIT UNION
   46  designated for the deposit of state moneys under the provisions of  this
   47  section shall, before deposits are made:
   48    a.  Execute  and  file with the commissioner of taxation and finance a
   49  bond to the state in such form and with such surety or sureties for such
   50  sums as may be prescribed and approved by the commissioner  of  taxation
   51  and  finance  and comptroller, for the safekeeping and prompt payment of
   52  such moneys on legal demand therefor with interest, if any; or
   53    b. In lieu of such surety bond, with the permission of the comptroller
   54  and the commissioner of taxation and finance,  deposit  with  the  comp-
   55  troller outstanding unmatured:
       S. 3616                             4
    1    (1)  bonds  or  notes of the United States of America, or obligations,
    2  the payment of which is guaranteed by the United States of America,
    3    (2) bonds or notes of the state of New York,
    4    (3)  bonds  or notes of any county, town, city, village, fire district
    5  or school districts in the state of New York authorized to be issued  by
    6  law,
    7    (4) bonds of the Port of New York Authority of any year,
    8    (5) bonds of the Buffalo and Fort Erie Public Bridge Authority,
    9    (6) bonds of the Triborough bridge and tunnel authority,
   10    (7) bonds or notes of the New York state thruway authority,
   11    (8) bonds, notes or other obligations of any municipal housing author-
   12  ity  in  the  state of New York authorized to be issued by law, provided
   13  such bonds, notes or other obligations qualify under the  provisions  of
   14  section forty-nine of the public housing law,
   15    (9) bonds or notes of the Power Authority of the state of New York,
   16    (10) bonds or notes of the Niagara Frontier Port Authority,
   17    (11)  bonds  or  notes  of the Dormitory Authority of the state of New
   18  York,
   19    (12) bonds or notes of the New York state bridge authority,
   20    (13) bonds or notes issued for any of the corporate  purposes  of  the
   21  New York state housing finance agency,
   22    (14)  bonds  or  notes  of  the  Metropolitan  Commuter Transportation
   23  Authority,
   24    (15) bonds or notes of the New York State Pure Waters  Authority,  for
   25  which the commissioner of taxation and finance and the comptroller shall
   26  deliver  a  certificate  of  deposit  containing  the conditions of such
   27  deposit,
   28    (16) bonds or notes of the Niagara Frontier Transportation Authority,
   29    (17) bonds or notes of the Rochester-Genesee  Regional  Transportation
   30  Authority,
   31    (18) bonds or notes of the Capital District Transportation Authority,
   32    (19)  bonds  or  notes of the Central New York Regional Transportation
   33  Authority,
   34    [20] (20) Bonds or notes of the New York state project finance agency,
   35    (21) Bonds or notes of the municipal assistance  corporation  for  the
   36  city of New York,
   37    (22)  bonds  or  notes issued for any of the corporate purposes of the
   38  New York state medical care facilities finance  agency,  for  which  the
   39  commissioner of taxation and finance and the comptroller shall deliver a
   40  certificate of deposit containing the conditions of such deposit, or
   41    (23) irrevocable letters of credit issued by a federal home loan bank.
   42    c. With the permission of the comptroller and commissioner of taxation
   43  and  finance  execute  and  file  with  the commissioner of taxation and
   44  finance an undertaking to the effect that such bank, trust company [or],
   45  industrial bank OR CREDIT UNION will safely keep and promptly  pay  over
   46  all such deposits on legal demand therefor with interest, if any, and as
   47  collateral  to such undertaking deposit with the comptroller a certified
   48  check or checks drawn on and certified by the federal reserve bank with-
   49  in the state payable to his order in such amount or amounts as shall  be
   50  agreed upon by the comptroller and the depositary.
   51    S 5. This act shall take effect immediately.
feedback