Provides for the inclusion of low income credit unions in the banking development district program in cities having a population of one million or more persons

BILL NUMBER:A238C

Title of bill

An act to amend the banking law, in relation to includ- ing low income credit unions in the banking development district program

Purpose

To include low income credit unions in the state's banking development districts program.

Summary of provisions

The bill amends Section 96-d of the banking law to include in the banking development districts program low-income cred- it unions located in cities of one million or more persons.

Justification

Section 96-d of the Banking Law, entitled "Banking Development Districts" (BDD's) is designed to increase access to banking services by supporting branches in areas where there is a demonstrated need for such services. In this way, the program aims to enable local residents and small business owners to more easily become part of the financial mainstream, promote economic development, and stimulate the local economy by enhancing access to capital for local businesses.

In order to support branches in designated BDD's, the state comptroller, public authorities and public benefit corporations of the state, the commissioner of taxation and finance, and municipalities may deposit public funds in these branches. Section 96-d currently allows state and national banks, trust companies, savings banks, savings and loan associ- ations, and federal savings banks to participate in the program, but omits credit unions,

By adding low-income credit unions (already defined in section 450-a of the banking law) to the BDD program, this bill will help them to contin- ue their historic work of providing affordable financial services to consumers who might otherwise have difficulty accessing these services.

This bill will not require support of any particular low income credit union by any state or municipal agency, but will merely allow low income credit unions to be considered for such support, on par with other types of financial institutions already included in the BDD program.

Legislative history

2009: A00238B (Kavanagh)-Banks 2008: A08883 (Kavanagh)-Banks 2007: A08883 (Kavanagh)-Banks

Fiscal impact on the state

None.

Effective date

This act shall take effect immediately, provided, howev- er, that the amendments to paragraph (a) of 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 repealed therewith.