Bill > A09574

This bill allows certain banks, specifically those approved to operate in a Banking Development District (a program designed to encourage financial services in underserved areas), to use a "deposit placement program" as an alternative to traditional security measures like bonds or letters of credit for holding state money. This program, which requires approval from the Comptroller and the Commissioner of Taxation and Finance, permits these "participating banks" to redeposit state funds into accounts at other approved banking institutions, acting as a custodian for the state. The redeposited funds must be insured, and the participating bank must simultaneously receive an equal amount of deposits from customers of other financial institutions, creating a reciprocal arrangement. This provision is specifically for the Banking Development District Program and does not apply to other state fund deposits.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A9574