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

                                  4555

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2013
                               ___________

Introduced  by  M.  of  A.  GABRYSZAK, WEISENBERG, CASTRO, COOK, JAFFEE,
  HOOPER, LUPARDO, LIFTON, GIBSON -- Multi-Sponsored  by  --  M.  of  A.
  BRENNAN,  MAISEL, McLAUGHLIN, PEOPLES-STOKES, SWEENEY -- 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, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08033-01-3
              

A. 4555                             2

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
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, 2014; provided, however, if
this act shall become a law after such date it shall take  effect  imme-
diately and shall be deemed to have been in full force and effect on and
after  January 1, 2014, provided, further, that the amendments to subdi-
vision 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 subdivision 5 of section 96-d of the banking law  made
by  section one of this act shall not affect the repeal of such subdivi-
sion 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 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.