News Release

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NY Lobbies for Depository Choice

(May 7 - Latham, NY) – A core group of representatives from New York credit unions and the New York State Credit Union League recently gathered in Albany specifically to talk about and advocate for depository choice.

Currently, the only banking institutions in New York that are permitted to accept deposits from local and state governmental units are commercial banks.

"The law addressing municipal funds was enacted in 1909," said League President/CEO William J. Mellin. "Credit unions did not exist in New York 100 years ago! Clearly it is time to fix this antiquated law and allow municipalities the depository options they are seeking."

At present, there are a number of bills in the Senate and/or the Assembly that would secure depository choice for credit unions:

  • S.3664 (Sen. Kevin Parker, D-Metropolitan)/A.6511 (Assemblyman Carl Heastie, D-Metropolitan) would allow state and federal credit unions, savings and loans and federal savings associations to accept municipal deposits
  • S.4054 (Sen. Hugh Farley, R-Capital)/A.6856 (Assemblywoman Catherine Nolan, D-Metropolitan) would allow state and federal credit unions and savings banks to accept municipal deposits
  • S.4071A (Sen. John Flanagan, R-Long Island)/A.7322A (Assemblyman Harvey Weisenberg, D-Long Island) contains a local option in which the local governing body would designate the financial institution by resolution and limits the amount that each depository financial institution can accept for deposit up to $1 million per municipality
    •

    The faction of 16 met mid-morning to review the pros and cons of each of the bills before heading to the State Capitol and legislative offices to visit 19 legislators*, including bill sponsors and chairmen of key committees. During their meetings they reiterated how credit unions play a vital role in the state economy, how they are regularly approached by representatives from their local fire departments, libraries, schools and villages, but, as required by current state law, they must turn away their business. They also spoke about how municipalities facing tight budgets could see financial benefits from working with credit unions and how their taxpayer’s funds would stay local, benefiting their communities.

    Following their visits, the group returned to their meeting place for a legislative reception, during which participants joined with key influencers of depository choice legislation to continue their discussions.

    "As commercial banks deepen the credit crisis, government leaders need to explore more local, responsible and affordable financial services options," said Amy Kramer, VP, Governmental Affairs. "Our targeted visits provided the opportunity for New York credit unions to convince lawmakers that their communities and constituents would greatly benefit by allowing local government access to credit unions."

    Credit union participants in the Municipal Depository Choice Lobby Day included: Linda Armyn, VP, Corporate Development & Government Affairs, Bethpage FCU; Bruce Beaudette, CEO, Sunmark FCU; Michael Castellana, CEO, SEFCU and chair, Municipal Deposits Task Force; Tristram Coffin, CEO, Alternatives FCU; Jim Doig, CEO, Sydney FCU; Ted Goldwyn, manager, SEG Development & Business Services and Lori Kain, public relations specialist, Corning FCU; Robert Nemeroff, director, Marketing, Melrose CU; Sheila Rees, operations manager, Syracuse Cooperative FCU; and William Spearman, CEO, Mid-Hudson Valley FCU and League board member.

    President/CEO William J. Mellin, SVP/General Counsel Michael Lanotte, VP of Governmental Affairs Amy Kramer and Legislative Analyst Cheryl Halter represented the League.

    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.

    The day’s participants met with the following legislators and/or their staff:
    • Senator John Bonacic (R-Catskill/Hudson)
    • Senator Joseph Bruno (R-Capital), Majority Leader
    • Senator Hugh Farley (R-Adirondack), Banks Chair
    • Senator John Flanagan (R-Long Island), sponsor
    • Senator Owen Johnson (R-Long Island), Finance Chair
    • Senator William Larkin, Jr. (R- Catskill/Hudson), Banks Committee
    • Senator Elizabeth Little (R-Adirondack), Local Government Chair
    • Senator Kevin Parker (D-Metropolitan), sponsor
    • Senator George Winner, Jr. (R-Finger Lakes)
    • Assemblyman James Bacalles (R-Finger Lakes)
    • Assemblyman Kevin Cahill (D-Catskill/Hudson)
    • Assemblyman Herman "Denny" Farrell (D-Metropolitan), Ways and Means Chair
    • Assemblyman Carl Heastie (D-Metropolitan), sponsor
    • Assemblyman Sam Hoyt (D-Buffalo), Local Governments Chair
    • Assemblywoman Catherine Nolan (D-Metropolitan), sponsor
    • Assemblyman Sheldon Silver (D-Metropolitan), Speaker
    • Assemblyman Tom O’Mara (R-Finger Lakes), Banks Committee
    • Assemblyman Darryl Towns (D-Metropolitan), Banks Chair
    • Assemblyman Harvey Weisenberg (D-Long Island), Banks Committee

    　

    (l-r): Bruce Beaudette, Sunmark FCU; William J. Mellin, New York State Credit Union League; Senator Hugh Farley (R-Capital/Adirondack); Michael Castellana, SEFCU; and Tristram Coffin, Alternatives FCU.
     

    　

    　(l-r) Robert Nemeroff, Melrose CU talks about the pros of depository choice with Assemblyman Herman "Denny" Farrell (D-Metropolitan).

     

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