STATE OF NEW YORK ________________________________________________________________________ 7100 IN SENATE (Prefiled) January 3, 2018 ___________ Introduced by Sen. KAVANAGH -- 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 low income credit unions in the banking development 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, and paragraph (b) as further amended by section 4 104 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 or, in 14 cities having a population of one million or more persons, any low 15 income credit union as designated by section four hundred fifty-a of 16 this chapter or any federal credit union that has been designated a low 17 income credit union by the National Credit Union Administration; 18 provided, however, that such provisions of law do not grant a savings 19 bank, savings and loan association, federal savings and loan association 20 or federal savings bank or, in cities having a population of one million 21 or more persons, any low income credit union as designated by section 22 four hundred fifty-a of this chapter or any federal credit union that 23 has been designated a low income credit union by the National Credit 24 Union Administration eligibility to accept municipal or public funds or 25 municipal or public moneys other than for the limited purposes of the 26 establishment of a branch in a banking development district pursuant to 27 this section. Any such municipal or public funds or moneys shall be EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00850-01-7S. 7100 2 1 deposited only at the branch established pursuant to this section, and 2 any municipal funds or moneys may be deposited only by the sponsoring 3 municipality in which the branch and banking development district are 4 located; provided further that any such municipal or public funds or 5 moneys shall be subject to the same requirements which apply to munici- 6 pal or public funds or moneys deposited in a bank, trust company or 7 national bank and shall also be subject to the provisions of section one 8 hundred five of the state finance law or section ten of the general 9 municipal law relating to such deposits. 10 (b) Notwithstanding any other provision of law, the superintendent of 11 financial services shall promulgate rules and regulations to authorize 12 the participation of savings banks, savings and loan associations, 13 federal savings banks and federal savings and loan associations or, in 14 cities having a population of one million or more persons, any low 15 income credit union as designated by section four hundred fifty-a of 16 this chapter or any federal credit union that has been designated a low 17 income credit union by the National Credit Union Administration in the 18 program established pursuant to this section. 19 § 2. This act shall take effect immediately, provided, however, that 20 the amendments to subdivision 5 of section 96-d of the banking law made 21 by section one of this act shall not affect the repeal of such subdivi- 22 sion and shall be deemed repealed therewith.