Relates to the community bank deposit program; increases the maximum amount of funds on deposit at a community banking institution to thirty million dollars.
Impact
The proposed amendment has several implications for state laws governing banking and financial institutions. By increasing the deposit limit, the bill encourages the utilization of community banks, which can lead to stronger local economic development. This approach may also contribute to a more equitable financial environment by directing state funds to regional banking entities, thus supporting their role in servicing local economies.
Summary
Bill S08406 seeks to amend the banking law concerning the community bank deposit program by increasing the maximum amount of funds that can be deposited at community banking institutions. Specifically, the bill proposes to raise the limit from twenty million dollars to thirty million dollars per institution. This change aims to enhance the capacity of local banks to hold deposits from state funds, thereby potentially boosting their operational capabilities and financial stability within their communities.
Contention
While the bill seems to promote community banking, it may also raise discussions about the prudence of sending state funds into community institutions with lower capital bases compared to larger banks. Critics may argue that increasing the deposit limit could expose state funds to greater risk if those community banks face financial challenges. Thus, there may be a call for heightened scrutiny and risk assessment related to the financial health and operational practices of these institutions before substantial amounts of public funds are insured.
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 funds of the state; prohibits certain public authorities, commissions or public benefit corporations from depositing moneys in certain banking institutions.
Relates to the money deposited as bail by charitable bail organizations; removes maximum authorized amount of money allowed to be deposited by such organizations.
Relates to the money deposited as bail by charitable bail organizations; removes maximum authorized amount of money allowed to be deposited by such organizations.
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.
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.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Authorizes the town of Chester to establish community preservation funds; establishes a real estate transfer tax with revenues therefrom to be deposited in said community preservation fund.