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NY A08971
Bill
Status
7/18/2012
Primary Sponsor
William Magnarelli
Click for details
AI Summary
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Local governments may authorize designated banks or trust companies to arrange redeposit of public funds through a deposit placement program into one or more banking institutions, with the bank serving as custodian for the local government.
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Funds held pending redeposit in excess of Federal Deposit Insurance Corporation coverage must be secured, and the full redeposited amount plus accrued interest must be FDIC-insured.
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State comptroller may authorize designated banks or trust companies to arrange redeposit of state moneys through a deposit placement program meeting identical conditions as local government deposits.
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Public authorities and public benefit corporations may temporarily invest moneys through a bank or trust company selected by the corporation that arranges redeposit in certificates of deposit and other deposit accounts with full FDIC insurance coverage.
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All deposit placement programs require that the depository simultaneously receive deposits from other financial institutions' customers in amounts at least equal to the government or corporation's redeposited funds; act takes effect immediately.
Legislative Description
Authorizes the state, local governments and public authorities to arrange for redeposit of moneys through a deposit placement program through a bank or trust company that serves as custodian with respect to the moneys and arranges for the redeposit of the moneys in one or more banking institutions, the monies being secured, provided that the depository receives deposits from customers of other financial institutions that are at least equal to the amount of the moneys so invested.
Last Action
signed chap.128
7/18/2012