Bill > A01605

This bill establishes a municipal deposit program that expands the types of financial institutions where local governments can deposit public funds, specifically including savings banks, savings and loan associations, and credit unions alongside traditional banks and trust companies. The bill defines these new types of financial institutions and introduces a key limitation that public funds deposited in these institutions are capped at $250,000. The legislation modifies existing municipal law to allow local government governing boards to designate these additional financial institutions as depositories for public funds, and provides guidelines for how these deposits can be made, including provisions for using courier services to transport funds and options for redepositing funds across multiple banking institutions. The bill also ensures that the depositing officer is released from liability for losses due to the default or insolvency of these financial institutions, and requires local governments to forward resolutions about their deposit choices to the state comptroller for record-keeping. The changes aim to provide local governments with more flexibility in managing their public funds while maintaining safeguards for financial security. The bill will take effect 90 days after becoming law.

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https://www.nysenate.gov/legislation/bills/2025/A1605