Relates to including credit unions and federal credit unions within the definition of bank, trust company or national bank for the purpose of the banking development district program (which was created to encourage the establishment of bank branches in geographic locations where there is a demonstrated need for banking services); relates to directing the banking board to promulgate rules and regulations to authorize the participation of credit unions and federal credit unions in such program; provides that for purposes of such program, a credit union may include in its membership any person or organization located within a local community, neighborhood or rural district where there is a demonstrated need for banking services.
STATE OF NEW YORK
________________________________________________________________________
5521--A
2015-2016 Regular Sessions
IN SENATE
May 14, 2015
___________
Introduced by Sens. MONTGOMERY, HAMILTON -- read twice and ordered
printed, and when printed to be committed to the Committee on Banks --
recommitted to the Committee on Banks in accordance with Senate Rule
6, sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the banking law, in relation to including credit unions
and federal credit unions within provisions regarding banking develop-
ment district program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 5 of section 96-d of the banking law, as added
2 by chapter 526 of the laws of 1998, paragraph (a) as amended by chapter
3 328 of the laws of 1999, paragraph (b) as further amended by section 104
4 of part A of chapter 62 of the laws of 2011, is amended to read as
5 follows:
6 5. (a) Notwithstanding the provisions of subdivision two of section
7 two hundred thirty-seven of this chapter; for the purposes of this
8 section, paragraph c of subdivision two of section ten of the general
9 municipal law, subdivision six of section one hundred five of the state
10 finance law and section four hundred eighty-five-f of the real property
11 tax law, any reference to a bank, trust company or national bank shall
12 be deemed to include a savings bank, savings and loan association,
13 federal savings and loan association [or], federal savings bank, credit
14 union or federal credit union; provided, however, that such provisions
15 of law do not grant a savings bank, savings and loan association, feder-
16 al savings and loan association [or], federal savings bank, a credit
17 union or a federal credit union eligibility to accept municipal or
18 public funds or municipal or public moneys other than for the limited
19 purposes of the establishment of a branch in a banking development
20 district pursuant to this section. Any such municipal or public funds or
21 moneys shall be deposited only at the branch established pursuant to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01032-04-6
S. 5521--A 2
1 this section, and any municipal funds or moneys may be deposited only by
2 the sponsoring municipality in which the branch and banking development
3 district are located; provided further that any such municipal or public
4 funds or moneys shall be subject to the same requirements which apply to
5 municipal or public funds or moneys deposited in a bank, trust company
6 or national bank and shall also be subject to the provisions of section
7 one hundred five of the state finance law or section ten of the general
8 municipal law relating to such deposits.
9 (b) Notwithstanding any other provision of law, the superintendent of
10 financial services shall promulgate rules and regulations to authorize
11 the participation of savings banks, savings and loan associations,
12 federal savings banks [and], federal savings and loan associations,
13 credit unions and federal credit unions in the program established
14 pursuant to this section.
15 § 2. Paragraph (f) of subdivision 1 of section 451-a of the banking
16 law, as amended by chapter 153 of the laws of 2015, is amended and a new
17 paragraph (g) is added to read as follows:
18 (f) Any incorporated or unincorporated organization composed princi-
19 pally of persons eligible to membership in the credit union and that
20 organization's employees[.]; or
21 (g) Any person or organization located within a local community,
22 neighborhood, or rural district where there is a demonstrated need for
23 banking services as determined by the superintendent.
24 § 3. This act shall take effect January 1, 2018; provided, that the
25 amendments to subdivision 5 of section 96-d of the banking law made by
26 section one of this act shall not affect the repeal of such subdivision
27 and shall be deemed to be repealed therewith as provided in section 4 of
28 chapter 526 of the laws of 1998, as amended.
