Bill Text: NY A03521 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: 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.

Spectrum: Moderate Partisan Bill (Democrat 12-2)

Status: (Introduced - Dead) 2016-06-08 - ordered to third reading rules cal.153 [A03521 Detail]

Download: New_York-2015-A03521-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3521
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 23, 2015
                                      ___________
       Introduced  by  M.  of  A.  ROBINSON, KEARNS, MOSLEY, SEPULVEDA, WEPRIN,
         CAMARA, PERRY -- read once and referred to the Committee on Banks
       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  and  providing  for  the  repeal  of  certain
         provisions upon expiration thereof
         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
   22  this section, and any municipal funds or moneys may be deposited only by
   23  the sponsoring municipality in which the branch and banking  development
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01032-01-5
       A. 3521                             2
    1  district are located; provided further that any such municipal or public
    2  funds or moneys shall be subject to the same requirements which apply to
    3  municipal  or  public funds or moneys deposited in a bank, trust company
    4  or  national bank and shall also be subject to the provisions of section
    5  one hundred five of the state finance law or section ten of the  general
    6  municipal law relating to such deposits.
    7    (b)  Notwithstanding any other provision of law, the superintendent of
    8  financial services shall promulgate rules and regulations  to  authorize
    9  the  participation  of  savings  banks,  savings  and loan associations,
   10  federal savings banks [and],  federal  savings  and  loan  associations,
   11  CREDIT  UNIONS  AND  FEDERAL  CREDIT  UNIONS  in the program established
   12  pursuant to this section.
   13    S 2. Subdivision 2 of section 451 of the banking  law  is  amended  by
   14  adding a new paragraph (c-1) to read as follows:
   15    (C-1)  FOR  THE  PURPOSES OF SECTION NINETY-SIX-D OF THIS CHAPTER, THE
   16  CREDIT UNION MAY INCLUDE IN ITS MEMBERSHIP ANY  PERSON  OR  ORGANIZATION
   17  LOCATED  WITHIN A LOCAL COMMUNITY, NEIGHBORHOOD, OR RURAL DISTRICT WHERE
   18  THERE IS A DEMONSTRATED NEED FOR BANKING SERVICES AS DETERMINED  BY  THE
   19  SUPERINTENDENT.
   20    S  3.  This  act shall take effect January 1, 2017; provided, however,
   21  that the amendments to subdivision 2 of section 451 of the  banking  law
   22  made  by  section two of this act shall expire and be deemed repealed on
   23  the same date and in the same manner as section 4 of chapter 526 of  the
   24  laws  of 1998, as amended; and provided, further, that the amendments to
   25  subdivision 5 of section 96-d of the banking law made by section one  of
   26  this  act  shall  not affect the repeal of such subdivision and shall be
   27  deemed to be repealed therewith as provided in section 4 of chapter  526
   28  of  the laws of 1998; and provided, however, that any branch established
   29  prior to the expiration and repeal of the provisions of this  act  by  a
   30  credit  union  or federal credit union in a banking development district
   31  pursuant to this act shall continue to operate in  accordance  with  the
   32  provisions of the banking law as amended by this act and remain eligible
   33  for all the rights and privileges authorized by this act.