Bill Text: NY S05521 | 2015-2016 | General Assembly | Introduced

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

---

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 3-0)

Status: (Introduced - Dead) 2016-06-08 - REPORTED AND COMMITTED TO RULES [S05521 Detail]

Download: New_York-2015-S05521-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5521
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 14, 2015
                                      ___________
       Introduced  by  Sen.  MONTGOMERY  -- 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
   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.
                                                                  LBD01032-03-5
       S. 5521                             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    S  2.  Paragraph  (f) of subdivision 1 of section 451-a of the banking
   13  law, as added by chapter 502 of the laws of 2014, 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    S  3.  This  act shall take effect January 1, 2017; 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.