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Bill

A 4818

Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations

2025 Regular Session Introduced by Chris Burdick and 8 co-sponsors

Bill A 4818 allows municipal corporations to deposit funds in credit unions and savings institutions, enhancing financial options and potentially improving returns on public funds.

REFERRED TO BANKS
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WeVote Research Nonpartisan
Bill Summary · A 4818

Summary of Bill A 4818

Bill Information

  • Bill Number: A 4818
  • Title: Allows credit unions, savings banks, savings and loan associations, and federal savings associations to accept and secure deposits from municipal corporations
  • Status: Referred to Banks
  • Introduced: February 06, 2025
  • Classification: Bill

Purpose and Intent

Bill A 4818 aims to expand the financial options available to municipal corporations by allowing them to deposit funds in various financial institutions, including credit unions, savings banks, savings and loan associations, and federal savings associations. The intent is to enhance the financial management capabilities of municipalities and potentially improve their returns on deposits.

Key Provisions

  • Eligibility for Deposits: The bill specifically permits municipal corporations to deposit funds in:
    • Credit unions
    • Savings banks
    • Savings and loan associations
    • Federal savings associations
  • Securing Deposits: The bill outlines that these financial institutions must have the capability to secure the deposits made by municipal corporations, ensuring the safety of public funds.

Impact

  • Municipal Corporations: This legislation would directly benefit municipal corporations by providing them with more options for managing their funds, potentially leading to better interest rates and financial services.
  • Financial Institutions: Credit unions and other specified financial institutions would gain access to a new customer base, which could enhance their deposit base and overall financial stability.
  • Public Funds Management: The bill may lead to improved financial management practices within municipalities, as they would have more flexibility in choosing where to place their funds.

Procedural Aspects

  • Current Status: As of February 06, 2025, the bill has been referred to the Banks Committee for further consideration.
  • Related Legislation: This bill is related to several prior-session bills (A 7017, A 1112, A 3239, A 4370, A 6511, A 7619, A 3262, A 8289, A 3246) and has a companion bill (S 3066) in the Senate, indicating ongoing legislative interest in this area.

Conclusion

Bill A 4818 represents a significant step towards modernizing the financial landscape for municipal corporations by allowing them to diversify their deposit options. By enhancing the ability of municipalities to manage their funds effectively, the bill could lead to improved financial outcomes for local governments and their constituents.

Compiled from official sources — confirm details with the bill’s official record.

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