LATHAM, N.Y. — The New York State Credit Union League issupporting a measure that would allow credit unions, savings banks,savings and loan associations and federal savings associations toaccept and secure deposits from municipal corporations.

“There is no reason why a credit union shouldn't be a part ofthe competition for municipal deposits,” stated Councilman DavidWeprin (D-Queens), author of the legislation. “If commercial bankscan thrive as they have for years, why shouldn't a credit unionreap the same benefits of this competition.”

The resolution–similar to the ones approved by the Albany,Syracuse, and Ithaca Common Councils–calls upon the statelegislature to support legislation to enable municipalities to makedeposits into credit unions.

“By retaining local money in our respective communities throughmunicipal deposits, credit unions will be adding funds to thelending pool,” said Alan Kaufman, CEO, Melrose CU. “In so doing,credit unions will be helping to reduce the cost of funds, makingit possible to offer lower loan rates while creating moreaffordable loan products for our communities.”

The resolution will soon be discussed at a public hearing of theCity Council Finance Committee, which Weprin chairs, the leaguereported.

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