The Senate Banks Committee on Tuesday voted the Municipal Deposits Bill (S.670/A.8289) out of committee, meaning the bill could come to a floor vote as early as next week — the first time the bill has made it to the floor calendar, thanks to dedicated efforts by credit union advocates.

The New York Credit Union Association is encouraging legislators to support the Municipal Deposits Bill, which allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

Under current state law, school districts, state government and other municipalities do not have the ability to deposit funds and access other financial services with credit unions. For generations, school districts have been limited to engaging with traditional commercial banks and other savings institutions.

Specifically, the bill would:

• help stretch taxpayer dollars by giving municipalities a depository choice;
• alleviate burdens on small, rural localities; and
• support school districts and towns across the state.

Association leadership is meeting with legislators urging their support of the Municipal Deposits Bill this week, and credit union advocates are encouraged to be on the lookout for a call to action to contact their legislators in support of this legislation. 

Foreclosure Abuse Prevention Act
As previously reported, the Association on May 6 issued a call to action urging Gov. Kathy Hochul to oppose A.7737-B/S.5473-D, the Foreclosure Abuse Prevention Act. The Foreclosure Abuse Prevention Act amends the Real Property Actions and Proceedings Law to severely limit lenders, both state and federally chartered. As drafted, this bill restricts lenders in their ability to perform loss mitigation and carry out foreclosures in the state.

The Association sincerely thanks you for your engagement on these important legislative matters.