ALBANY, N.Y. – New York’s credit unions are applauding the passage by the State Senate of S.670/A.8289, which allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
The legislation was sponsored by Sen. James Sanders Jr. (D-10).
Although the legislation has not passed in the Assembly in the current legislative session, the New York Credit Union Association said its passage in the Senate marks the first time in decades that municipal deposit legislation has passed either chamber and provides the association with momentum for next year’s session.
“Passage of the measure is a direct result of advocacy efforts by credit unions, credit union advocates and the NYCUA, as well as organizations representing municipalities and school districts across New York state,” the association said.
The NYCUA reported it joined with school boards, towns, and Conference of Mayors in support of the bill, which allows local governing bodies to make deposits into credit unions, giving municipalities a depository choice and “an opportunity to save taxpayer dollars by incurring lower fees and taking advantage of the best possible return on deposits.”
The Association sincerely thanks Sen. Sanders for sponsoring the bill and his leadership in getting it through the Senate, and all who took action and reached out to their legislators in support of the bill.
Getting the Best Returns
“After years of lobbying and advocacy efforts, this priority legislation has passed in the Senate for the first time — a major victory for both credit unions and New York state municipalities and taxpayers,” said NYCUA President/CEO William J. Mellin. “Passage of the Municipal Deposits Bill in the Senate is an historic achievement and brings it closer to ultimately becoming law. We thank Sen. Sanders for his steadfast leadership on this issue. We look forward to continuing to work with him and other supporters so that New York’s municipalities have the option of placing taxpayer funds where they can get the best returns within their local communities, a power already granted by the majority of states.”