A00644 Summary

• Creates a new Credit Union Deposit Program in Banking Law Article 2-D to authorize the State Comptroller and Commissioner of Taxation and Finance to deposit state funds into eligible credit unions for economic stimulus purposes.

• Establishes eligibility requirements for credit unions to participate, including a satisfactory or better examination rating, with federal credit unions eligible if their principal office is in New York and they meet additional criteria set by state officials.

• Caps deposits at a maximum of $250 million each for both the State Comptroller and the Commissioner of Taxation and Finance under this program.

• Amends State Finance Law sections 98-a and 105 to explicitly authorize deposits and investments in credit unions alongside existing authorization for banks and trust companies, with deposits to be secured by bonds, notes, or irrevocable letters of credit from federal home loan banks.

• Allows deposits to be made at negotiated rates and time periods agreed upon between state officials and eligible credit unions.