S T A T E O F N E W Y O R K
________________________________________________________________________
8693
I N A S S E M B L Y
February 3, 2014
___________
Introduced by M. of A. ROBINSON -- read once and referred to the Commit-
tee 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, paragraph (b) as further amended by section 104
of part A of chapter 62 of the laws of 2011, 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08033-02-4
A. 8693 2
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 superintendent of
financial services 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 January 1, 2016; 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 and in the same manner as section 4 of chapter 526 of the
laws of 1998, as amended; and provided, further, that the amendments to
subdivision 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; and provided, however, that any branch established
prior to the expiration and repeal of the provisions of this act by a
credit union or federal credit 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 privileges authorized by this act.