Bill > S08357

This bill amends the state finance law to create a new deposit placement program for banks participating in the Banking Development District Program. Under this program, a "participating bank" (defined as a bank approved to operate in a banking development district, designated by the comptroller, and either a minority depository institution or having less than $10 billion in assets) may, with the discretion of the comptroller and commissioner of taxation and finance, redeposit state moneys through a special arrangement. The redeposit must meet several conditions: the bank must serve as custodian, redeposit moneys into accounts with other banking institutions, ensure that excess funds are secured, guarantee that the full amount is federally insured, and simultaneously receive an equal amount of deposits from other financial institutions. The comptroller is authorized to establish rules and regulations for the program, including contract requirements and reporting on the program's impact. Importantly, the bill specifies that this deposit placement program can only be used for the Banking Development District Program and cannot be applied to other purposes. The act takes effect immediately upon passage.

Budget and Finance, Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S8357