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

6 Co-sponsors

• Adriano Espaillat
• Ruth Hassell-Thompson
• Liz Krueger
• Bill Perkins
• John L. Sampson
• José M. Serrano

BILL NUMBER:S194

Title of bill

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

Purpose of bill

To include low-income credit unions in the state's banking development districts program in cities with a population of one million or more.

Summary of provisions

The bill amends Section 96-d of the banking law to include credit unions that have been designated low-income credit unions by the State or the National Credit Union Administration, in the banking development districts program in the City of New York.

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 or 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 associations, and federal savings banks to participate in the program, but omits credit unions.

By adding state low-income credit unions (already defined in section 450-a of the banking law), and any federal credit union designated low income by the National Credit Union Administration, to the BDD program, this bill will help them to continue 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 state and federal low-income credit unions to be considered for such support, on par with other types of financial institutions already included in the BDD program.

This act shall take effect immediately, provided, however, that the amendments 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.

Legislative history

2010: S.527B (Squadron) - Third Reading, A.238C (Kavanagh) -

Banks 2009: S.5279B (Squadron) - Banks Banks, A.238C (Kavanagh) - Banks 2008: A.8883 (Kavanagh) - Banks 2007: A.8883 (Kavanagh) - Banks 2012: Referred to Banks

Effective date

This act shall take effect immediately, provided, however, that the amendments subdivision 5 of sections 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.