Bill Text: NY S06323 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to temporary investments by local governments.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2021-06-09 - SUBSTITUTED BY A7209 [S06323 Detail]

Download: New_York-2021-S06323-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6323

                               2021-2022 Regular Sessions

                    IN SENATE

                                     April 21, 2021
                                       ___________

        Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government

        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
        S. 6323                             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.