NY A08289

Expands eligible financial institutions to accept municipal public deposits to include credit unions, savings banks, savings and loan associations, and federal savings associations, in addition to existing banks.

Establishes phased deposit limits for credit unions accepting municipal funds: $500,000 (2022), $1 million (2023), $2 million (2024), $3 million (2025), $4 million (2026), and $5 million (2027).

Requires credit unions accepting municipal deposits with average daily balances exceeding $300,000 to invest in their communities an amount equal to 0.35% of that balance (capped at $100,000 annually) for affordable housing, minority and women-owned businesses, community services, and revitalization efforts.

Directs the Department of Financial Services to study and report by January 1, 2027 on the impact of allowing these institutions to accept municipal deposits, including effects on commercial bank deposits and small community banks.

Sunsets the credit union and savings institution municipal deposit provisions on December 31, 2027, though existing deposits may be retained; increases state community bank deposit program limit from $250 million to $300 million per entity.