Local governments in New York State are not currently authorized to make deposits with credit unions. NYCUA supports A.3262 (Zebrowski)/S.322 (Robach), which would allow credit unions to accept deposits from municipal corporations. Doing so would give municipalities depository choice, save taxpayer dollars, and generate revenues that exceed the combination of interest and tax revenues garnered from bank income on public deposits.
- document Template - Credit Union Letter in Support of Municipal Deposits (20 KB)
- document Template - Municipality Resolution (16 KB)
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Municipal Deposits Hearing on May 20, 2019
Assembly Standing Committee on Banks, Assembly Standing Committee on Local Governments
Under current law, public funds of the State or its municipalities must be deposited in banks or trust companies authorized to do business in the State. Over the years, there have been various proposals that would have authorized public funds to be deposited into credit unions.
The Assembly Standing Committees on Banks and Local Governments will hold a hearing to examine whether credit unions should be authorized to accept the deposit of these public funds and the impact, if any, that State and municipal deposits would have on various stakeholders.
Legislative Office Building
Hearing Room C
Albany, NY 12210
Monday, May 20th, 2019