News Release
Contact: Public Relations Coordinator
(800) 342-9835, ext. 8130Weprin Introduces Municipal Deposits Resolution
(February 19 - Latham, NY) – A resolution calling upon the state Legislature to pass legislation that would allow credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations was introduced accepted at a recent meeting of the New York City Council. Under current law, only commercial banks are allowed to accept such deposits.
Introducing the resolution was Queens Council Member and Finance Chair David Weprin (D). Weprin also spoke in support of the resolution at the meeting, emphasizing the need for elected officials statewide to seek depository choice.
"There is no reason why a credit union shouldn’t be a part of the competition for municipal deposits," stated Councilman Weprin. "If commercial banks can thrive as they have for years, why shouldn’t a credit union reap the same benefits of this competition."
The resolution, similar to the ones approved by the Albany, Syracuse and Ithaca Common Councils, calls upon the state Legislature to support legislation which would enable municipalities to make deposits into credit unions.
"By retaining local money in our respective communities through municipal deposits, credit unions will be adding funds to the lending pool," said Alan Kaufman, CEO, Melrose CU. "In so doing, credit unions will be helping to reduce the cost of funds, making it possible to offer lower loan rates while creating more affordable loan products for our communities."
The resolution will soon be discussed at a public hearing of the City council Finance Committee, which Weprin chairs.
Four municipal deposits bills have been launched on the Assembly side, three in the Senate: A.6511 and S.3664 introduced by Assemblyman Carl E. Heastie (D-Metropolitan) and Senator Kevin Parker (D-Metropolitan) respectively; A.6856 and S.4054 introduced by Assemblywoman Catherine T. Nolan (D-Metropolitan) and Senator Hugh T. Farley (R-Capital), respectively; A.7322 and S.4071 introduced by Assemblyman Harvey Weisenberg (D-Long Island) and Senator John T. Flanagan (R-Long Island); and A.7030 introduced by Assemblyman Sweeney (D-Long Island). The bills are currently in the Local Government, Banks and Ways and Means committees in their respective houses.
NYSCUL will continue to work behind the scenes to introduce similar resolutions in other cities across the state. Securing visible support for municipal deposits from local elected officials is a crucial component of the NYSCUL’s strategy to encourage passage of amendments to current banking law as it relates to municipal deposits.
The New York State Credit Union League (NYSCUL) has served as the trade association for the state’s credit unions for 91 years. It is the fifth largest league in the country. New York credit unions have assets of more than $39 billion and 4.2 million members. To learn more about the League, visit www.nyscul.org.
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