In a major, historic victory for New York’s credit unions, Gov. Kathleen C. Hochul yesterday signed into law legislation authorizing credit unions to participate in the state’s Excelsior Linked Deposit Program. The issue has been a key legislative priority for the New York Credit Union Association since the program was first introduced in 1993.
“New York credit union advocates worked assiduously and persistently on this issue over the course of more than two decades,” said NYCUA President/CEO William J. Mellin. “Now, after years of hard lobbying and advocacy efforts, this priority legislation has been signed into law. This is a massive victory for both credit unions and New York businesses.”
The Excelsior Linked Deposit Program was created in 1993 to assist small- and mid-size businesses in New York with expansions, modernizations, development and other investment projects. Through the program, eligible businesses can obtain commercial loans from authorized financial institutions at significantly reduced interest rates. Lenders are compensated with a deposit of state funds at comparably reduced rates.
Significantly, the new law allowing credit unions to participate in the program authorizes New York to deposit public funds in credit unions.
“As we have stated for years, this new law is a ‘win-win’ for credit unions and New York businesses alike,” said Mellin. “With credit unions now eligible to participate in the Excelsior Linked Deposit Program, New York businesses seeking to expand and evolve will have more access to affordable financial solutions. Similarly, credit unions will be able to deepen their relationships with businesses in their communities and provide them with even more services.”
The legislation, A-5459/S-191, was introduced by Assemblywoman Taylor Darling, a Democrat from Hempstead and a member of the Assembly Economic Development Committee; and Sen. James Sanders Jr., a Democrat from Queens and Chairman of the Committee on Banks.
Mellin said: “On behalf of the New York credit union community, I send my sincere gratitude to Assemblywoman Darling, Sen. Sanders and Gov. Hochul for their leadership and ensuring this practical and pragmatic piece of legislation became law.”
About the New York Credit Union Association:
For more than 100 years, the New York Credit Union Association has served as the trade association for the state’s credit unions, which collectively hold more than $100 billion in assets and serve 6 million members. NYCUA advances the credit union movement by advocating, educating, uniting and supporting the interests of all New York credit unions. To learn more about NYCUA, visit www.nycua.org. To find a credit union or learn more about the credit union movement, visit www.yourmoneyfurther.com.
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