Relates to a deposit placement program for the Banking Development District Program

Summary

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.

Summary from NY Open Legislation. How we handle summaries

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Purpose, from the sponsor's memo

The State Finance Law (SFL) requires financial institutions that partic- ipate in the Banking Development District (BDD) Program to protect the State's deposits by posting collateral. This proposal will provide community banks and minority depository institutions (MDIs) with an option to use reciprocal deposits to secure federal deposit insurance for the value of the State's deposits as an alternative to collateral. The SFL is amended to permit, at the discretion of the state comptroller and the commissioner of taxation and finance, a bank, trust company, or national bank as set forth in section 96-d of the banking law that is a community bank or MDI the authority to use a deposit placement program in lieu of security bonds, letters of credit, checks, or other security as collateral. The use of a deposit placement program will enable community banks and MDIs that participate in the BDD Program this new option.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Where it stands

Passed the legislature and is awaiting a signature.

Banks · New York State Assembly

Also referred to Banks · New York State Senate, Finance · New York State Senate, Rules · New York State Assembly, Rules · New York State Senate.

Recorded votes

• Vote: Floor vote

  NY SenateMar 25, 2026Result: passed

  Voted yes (58)Voted no (1)Voted present (0)Absent (4)

  See member positions for the vote on Mar 25, 2026 (Floor vote)

• Vote: Committee vote · Finance

  Senate FinanceMar 5, 2026Result: passed

  Voted yes (22)Voted no (0)Voted present (0)Absent (0)

  See member positions for the vote on Mar 5, 2026 (Committee vote · Finance)

• Vote: Committee vote · Rules

  Senate RulesJun 9, 2025Result: passed

  Voted yes (21)Voted no (0)Voted present (0)Absent (0)

  See member positions for the vote on Jun 9, 2025 (Committee vote · Rules)

• Vote: Floor vote

  NY SenateJun 9, 2025Result: passed

  Voted yes (61)Voted no (1)Voted present (0)Absent (1)

  See member positions for the vote on Jun 9, 2025 (Floor vote)

Full history

1. Jun 2, 2026

   Ordered to Third Reading Rules CAL.354

   ORDERED TO THIRD READING RULES CAL.354

   NY Assembly

2. Jun 2, 2026

   Passed a chamber

   PASSED ASSEMBLY

   NY Assembly

3. Jun 2, 2026

   Reported out of committee

   REPORTED

   NY Assembly

4. Jun 2, 2026

   Substituted

   SUBSTITUTED FOR A9574

   NY Assembly

5. Jun 1, 2026

   Reported out of committee

   REPORTED REFERRED TO RULES

   NY Assembly