Muni Deposits Bill Goes Down in New York

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ALBANY, N.Y. – A bill that would have allowed municipalities and other government entities to deposit funds in credit unions failed again this week, meaning the credit union lobby will have to wait until next year.

The bill, which has been introduced at least two times before, would have allowed government entities to deposit up to the federally insured $250,000 limit in federally insured credit unions.

This year’s bill had the backing of Gov. David Patterson and New York City Mayor Michael Bloomberg, who had pledged $25 million in deposits for credit unions if the legislation had passed.

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