Allows a bank, in the discretion of the comptroller and the commissioner of taxation and finance, to arrange for the redeposit of moneys, in whole or in part, through a deposit placement program.
Impact
The introduction of S08357 is expected to streamline the process of managing state deposits while promoting the growth of minority depository institutions. By providing flexibility for banks in terms of securing deposits without demanding traditional securities like bonds or letters of credit, the bill aims to encourage participation from smaller banks that may face challenges in meeting typical security requirements. This legislative change could provide an avenue for increased liquidity and opportunities for investment in local banking institutions, which in turn could lead to enhanced banking services within underserved communities.
Summary
Senate Bill S08357 proposes amendments to the state finance law with a focus on establishing a deposit placement program for the Banking Development District Program. This legislation allows banks designated by the comptroller to arrange for the redeposit of state moneys through the deposit placement program, which involves transferring funds into deposit accounts with various banking institutions for the state's benefit. The bill seeks to enhance the financial support available to minority depository institutions and ensure the protection of state funds through standardized banking practices.
Contention
There may be concerns regarding the financial implications of this bill, particularly about how the changes might influence the oversight and regulatory measures in place for these financial institutions. Stakeholders may debate the adequacy of protections for state funds deposited through this program, especially in ensuring that deposits are insured adequately beyond the federal coverage. Additionally, some may argue that such a program could inadvertently favor specific banks, potentially creating an uneven playing field in the banking sector. As these discussions unfold, the role of the comptroller in regulating and monitoring the program will be crucial in determining its effectiveness and safeguarding public funds.
Clarifies the definition of "community bank institution"; expands eligible deposits to a community bank institution under the community bank deposit program; requires an annual report by the state comptroller and the commissioner of taxation and finance of the efficacy of the community bank deposit program.
Relates to minority depository institutions which apply to establish a home or branch office in an unbanked or underbanked community; provides that such institutions shall be entitled to receive deposits from the state comptroller and the commissioner of taxation and finance.
Relates to minority depository institutions which apply to establish a home or branch office in an unbanked or underbanked community; provides that such institutions shall be entitled to receive deposits from the state comptroller and the commissioner of taxation and finance.
Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and shall pledge assets or furnish other security satisfactory in form and amount to the depositor, for the repayment of monies held in the name of such depositor, when required to be secured by applicable law, decree, or regulation.
Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and shall pledge assets or furnish other security satisfactory in form and amount to the depositor, for the repayment of monies held in the name of such depositor, when required to be secured by applicable law, decree, or regulation.
Relates to funds of the state; prohibits certain public authorities, commissions or public benefit corporations from depositing moneys in certain banking institutions.
Provides that any person interested in the grant or denial of discretionary release shall have the right to submit a written statement of views in support of or in opposition to the granting of discretionary release which the parole board may consider.
Provides that any person interested in the grant or denial of discretionary release shall have the right to submit a written statement of views in support of or in opposition to the granting of discretionary release which the parole board may consider.
Relates to establishing the tenancy deposit protection program; requires the commissioner of housing and community renewal to establish a program to hold security deposits in third-party accounts and create a dispute resolution process regarding the withholding of security deposits.
Relates to the money deposited as bail by charitable bail organizations; removes maximum authorized amount of money allowed to be deposited by such organizations.