Bill Text: NY S05187 | 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 10-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO BANKS [S05187 Detail]

Download: New_York-2017-S05187-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5187
                               2017-2018 Regular Sessions
                    IN SENATE
                                     March 13, 2017
                                       ___________
        Introduced  by  Sens. MONTGOMERY, BROOKS, COMRIE, DILAN, HAMILTON, HOYL-
          MAN, PARKER, SANDERS, STAVISKY -- read twice and ordered printed,  and
          when printed to be committed 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01054-01-7
        S. 5187                             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    § 2. Paragraph (f) of subdivision 1 of section 451-a  of  the  banking
    14  law, as amended by chapter 153 of the laws of 2015, is amended and a new
    15  paragraph (g) is added to read as follows:
    16    (f)  Any  incorporated or unincorporated organization composed princi-
    17  pally of persons eligible to membership in the  credit  union  and  that
    18  organization's employees[.]; or
    19    (g)  Any  person  or  organization  located  within a local community,
    20  neighborhood, or rural district where there is a demonstrated  need  for
    21  banking services as determined by the superintendent.
    22    §  3.  This  act shall take effect January 1, 2019; provided, that the
    23  amendments to subdivision 5 of section 96-d of the banking law  made  by
    24  section  one of this act shall not affect the repeal of such subdivision
    25  and shall be deemed to be repealed therewith as provided in section 4 of
    26  chapter 526 of the laws of 1998, as amended.