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History
- Referred to finance
Companion bill
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Authorizes credit unions to participate in the excelsior linked deposit program and raises the limit on the amount permitted to be on deposit at any given time
In Assembly Committee · Banks · Sponsor Robert Sweeney
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the state finance law and the banking law, in relation to authorizing credit unions to participate in the excelsior linked deposit program
Purpose
This legislation authorizes credit unions to participate in the Excelsior- Linked Deposit Program and raises the. limit on the amount permitted to be on deposit at any given time.
Summary of provisions
Sections 1 and .2 amend subdivisions 14 and 15 of § 213 of the State Finance Law to include state and federal credit unions.
Section 3 amends § 213 of the State Finance Law by adding a new subdivision 24 defining the term "credit union."
Section 4 amends § 454 of the Banking Law to allow state chartered credit unions to accept deposits and make loans pursuant to the Excelsior Linked Deposit Program and pledge assets or other security to repay such moneys.
Section 5 states that this act shall take effect immediately.
Justification
In the past 25 years as New York has shifted from a manufacturing to a service economy, some of the largest companies in the state (many of which sponsor a credit union for the benefit of their employees) have down sized, forcing thousands of credit union members to become self-employed. Credit unions have responded to the needs of their members by offering business loans. In most instances, members have sought assistance from their credit union for business loans primarily for the same reason they joined the credit union; because they were denied a loan (in this example, a business loan) at another financial institution.
With the State's economic and employment fortunes resting on the success of small business, it is increasingly evident that small businesses must have greater access to capital through a wider range of lenders. Since their inception, credit unions have filled an important niche in serving communities underserved by commercial banks and thrifts. Over 700 credit unions across the State play an integral role in serving the financial needs of3.5 million New Yorkers. Credit unions were created as a not- for-profit alternative to other financial institutions primarily because working-class individuals were being denied business through the ELDP which is a natural extension of the credit union mission.
Legislative history
2008: A.3205 - Passed Assembly 2005: A.4070 - Passed Assembly 2004: A.2078 - Passed Assembly 2001: A.9809B - Passed Assembly 2000: A.2565 - Passed Assembly 1998: A.10024 - Passed Assembly
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.