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NY S08357

Bill

Status

Engrossed

6/9/2025

Primary Sponsor

James Sanders

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Origin

Senate

2025-2026 General Assembly

AI Summary

  • Allows banks participating in the Banking Development District Program to use a deposit placement program as an alternative to traditional security bonds or collateral for state deposits
  • Limits eligibility to minority depository institutions or banks with less than $10 billion in assets that are approved by the Department of Financial Services to operate in a banking development district
  • Requires redeposited state funds to be fully insured by FDIC or NCUA, while any uninsured funds held pending redeposit must still be secured under existing collateral requirements
  • Mandates that participating banks receive reciprocal deposits from other financial institutions equal to or greater than the amount of state money they redeposit
  • Authorizes the Comptroller to establish rules governing program duration, deposit limits per institution, and reporting requirements on how deposits impact bank lending activities

Legislative Description

Allows a bank, in the discretion of the comptroller and the commissioner of taxation and finance, to arrange for the redeposit of moneys, in whole or in part, through a deposit placement program.

Last Action

ADVANCED TO THIRD READING

3/10/2026

Committee Referrals

Finance1/7/2026
Banks6/9/2025
Rules6/4/2025

Full Bill Text

No bill text available