NY A07198

Creates a Credit Union Deposit Program authorizing the State Comptroller and Commissioner of Taxation and Finance to deposit state funds into eligible credit unions to stimulate local economic activity.

Establishes eligibility requirements for credit unions to participate, including a satisfactory or better examination rating and, for federal credit unions, a principal office located in New York State.

Sets a maximum deposit limit of $250 million each for the State Comptroller and Commissioner of Taxation and Finance under the program.

Allows deposits to be made at negotiated rates and periods, and permits deposits to be secured by irrevocable letters of credit from federal home loan banks.

Amends the State Finance Law to permit credit unions to accept public money deposits and to be designated as depositories for state funds, on equal footing with banks and trust companies.