Bill Text: NY A05776 | 2017-2018 | General Assembly | Introduced

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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: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - referred to banks [A05776 Detail]

Download: New_York-2017-A05776-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5776
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 15, 2017
                                       ___________
        Introduced  by  M.  of  A.  ZEBROWSKI  --  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
          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
    24  district are located; provided further that any such municipal or public
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01054-01-7
        A. 5776                             2
     1  funds or moneys shall be subject to the same requirements which apply to
     2  municipal or public funds or moneys deposited in a bank,  trust  company
     3  or  national bank and shall also be subject to the provisions of section
     4  one  hundred five of the state finance law or section ten of the general
     5  municipal law relating to such deposits.
     6    (b) Notwithstanding any other provision of law, the superintendent  of
     7  financial  services  shall promulgate rules and regulations to authorize
     8  the participation of  savings  banks,  savings  and  loan  associations,
     9  federal  savings  banks  [and],  federal  savings and loan associations,
    10  credit unions and federal  credit  unions  in  the  program  established
    11  pursuant to this section.
    12    §  2.  Paragraph  (f) of subdivision 1 of section 451-a of the banking
    13  law, as amended by chapter 153 of the laws of 2015, is amended and a new
    14  paragraph (g) is added to read as follows:
    15    (f) Any incorporated or unincorporated organization  composed  princi-
    16  pally  of  persons  eligible  to membership in the credit union and that
    17  organization's employees[.]; or
    18    (g) Any person or  organization  located  within  a  local  community,
    19  neighborhood,  or  rural district where there is a demonstrated need for
    20  banking services as determined by the superintendent.
    21    § 3. This act shall take effect January 1, 2019;  provided,  that  the
    22  amendments  to  subdivision 5 of section 96-d of the banking law made by
    23  section one of this act shall not affect the repeal of such  subdivision
    24  and shall be deemed to be repealed therewith as provided in section 4 of
    25  chapter 526 of the laws of 1998, as amended.