The New York Credit Union Association today issued an urgent call to action in support of S.670/A.8289, which allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

This legislation has been deliberately working its way through the Legislature this session and has been released from the Senate Banks Committee, and is now awaiting passage in the State Senate. In the Assembly, the bill remains in committee.

Federal law permits credit unions to accept public deposits, but in New York State, local governments are not authorized to make deposits of municipal funds into credit unions. As a result, large commercial banks enjoy a monopoly over the deposit of public funds. Credit unions routinely receive deposit requests from municipalities including fire departments, villages, schools, and libraries and have to turn them away.

The Association joins with School Boards and Towns in support of S.670/A.8289, which would allow local governing bodies to make deposits into credit unions, giving municipalities a depository choice and an opportunity to save taxpayer dollars by incurring lower fees and taking advantage of the best possible return on deposits.

Please visit the Association’s Action Center today to send a pre-drafted letter in support of this bill to your local legislator. It is critical the New York credit union movement urgently conveys our strength in a united manner.

Foreclosure Abuse Prevention Act
Last week, the Association called for action on Foreclosure Abuse Prevention Act, saying the legislation would have a deleterious effect New York’s real property financial ecosystem including lenders, homeowners, and the secondary market overall, as previously reported.

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