NY A00774

Creates a Credit Union Deposit Program authorizing the State Comptroller and Commissioner of Taxation and Finance to deposit up to $250 million each into eligible credit unions to stimulate local economic activity.

Establishes eligibility requirements for credit unions participating in the program: must be chartered in New York or be a federal credit union with principal office in the state, and must have a satisfactory or better examination rating.

Allows state deposits in eligible credit unions 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 State Finance Law sections 98-a and 105 to authorize the Comptroller and Commissioner of Taxation and Finance to accept certificates of deposit from and make deposits with credit unions, in addition to banks and trust companies.

Takes effect immediately upon enactment.