BILL NUMBER: S8406
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the banking law, in relation to the community bank
deposit program
 
PURPOSE:
To incentivize participation in the Community Bank Deposit Program.
 
SUMMARY OF PROVISIONS:
Section 1 amends the Banking Law at section 87(2) to increase the allow-
able amount of state deposits for the Community Bank Deposit Program
from $20 million to $30 million.
Section 2 sets forth an effective date.
 
JUSTIFICATION:
Increasing the maximum allowable amount of funds on deposit from $20
million to $30 million will expand available lending for home mortgages,
small businesses and farms, and community development by participating
community banks. In addition, increasing the amount available per finan-
cial institution will create an increased incentive for eligible banks
to participate in this program, expanding the geographic impact of state
deposits used for lending.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8406: 87 banking law, 87(2) banking law