S T A T E   O F   N E W   Y O R K
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                                   168

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. JEFFRIES, PERRY, WRIGHT -- Multi-Sponsored by --
  M. of A. HYER-SPENCER -- 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:

  Section 1. Subdivision 5 of section 96-d of the banking law, as  added
by  chapter 526 of the laws of 1998, paragraph (a) as amended by chapter
328 of the laws of 1999, is amended to read as follows:
  5. (a) Notwithstanding the provisions of subdivision  two  of  section
two  hundred  thirty-seven  of  this  chapter;  for the purposes of this
section, paragraph c of subdivision two of section ten  of  the  general
municipal  law, subdivision six of section one hundred five of the state
finance law and section four hundred eighty-five-f of the real  property
tax  law,  any reference to a bank, trust company or national bank shall
be deemed to include a  savings  bank,  savings  and  loan  association,
federal  savings and loan association [or], federal savings bank, CREDIT
UNION OR FEDERAL CREDIT UNION; provided, however, that  such  provisions
of law do not grant a savings bank, savings and loan association, feder-
al  savings  and  loan  association [or], federal savings bank, A CREDIT
UNION OR A FEDERAL CREDIT  UNION  eligibility  to  accept  municipal  or
public  funds  or  municipal or public moneys other than for the limited
purposes of the establishment of  a  branch  in  a  banking  development
district pursuant to this section. Any such municipal or public funds or
moneys  shall  be  deposited  only at the branch established pursuant to
this section, and any municipal funds or moneys may be deposited only by
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.
              

                                                           LBD00311-01-9

A. 168                              2

district are located; provided further that any such municipal or public
funds or moneys shall be subject to the same requirements which apply to
municipal  or  public funds or moneys deposited in a bank, trust company
or  national bank and shall also be subject to the provisions of section
one hundred five of the state finance law or section ten of the  general
municipal law relating to such deposits.
  (b)  Notwithstanding  any  other  provision  of law, the banking board
shall promulgate rules and regulations to authorize the participation of
savings banks, savings and  loan  associations,  federal  savings  banks
[and],  federal savings and loan associations, CREDIT UNIONS AND FEDERAL
CREDIT UNIONS in the program established pursuant to this section.
  S 2. Subdivision 2 of section 451 of the banking  law  is  amended  by
adding a new paragraph (c-1) to read as follows:
  (C-1)  FOR  THE  PURPOSES OF SECTION NINETY-SIX-D OF THIS CHAPTER, THE
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 AS DETERMINED  BY  THE
SUPERINTENDENT.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force  and  effect  on  and  after  January  1,  2009,
provided,  however,  that the amendments to subdivision 2 of section 451
of the banking law made by section two of this act shall expire  and  be
deemed repealed on the same date as section 4 of chapter 526 of the laws
of  1998, as amended and provided, further that the amendments to subdi-
vision 5 of section 96-d of the banking law made by section one of  this
act  shall not affect the repeal of such subdivision and shall be deemed
to be repealed therewith as provided in section 4 of chapter 526 of  the
laws  of  1998;  provided, however, that any branch established prior to
the expiration and repeal of this act by a credit union or federal cred-
it union in a banking development district pursuant to  this  act  shall
continue to operate in accordance with the provisions of the banking law
as amended by this act and remain eligible for all the rights and privi-
leges authorized by this act.