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History
- Substituted by A9408
- Ordered to third reading cal.1613
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to qualifications for membership and general powers of credit unions
Signed by Governor · Sponsor Annette Robinson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7112
Title of bill
An act to amend the banking law, in relation to qualifications for membership and general powers of credit unions
Purpose Or General Idea Of Bill:
This bill would expand the qualifications for membership into credit unions and to create parity with federal credit unions in the areas of branching and investing. This bill would allow state-chartered credit unions to apply to the Superintendent of the Department of Financial Services (DFS) to request a membership that includes groups based on employment, association and community within a single field of membership.
Summary Of Specific Provisions:
Section 1. Amends subdivision 2 of section 451 to provide that the qualification for memberships shall be determined by a new section 451-a and shall not apply to a corporate credit unions.
Section 2. Adds a new section 451-a to the banking law that specifies the qualification for memberships for a state-chartered credit union and clarifies that the Superintendent of DFS maintains control over determining field of membership.
Section 3. Amends subparagraph (i) of paragraph (a) of subdivision 18 of section 454 of the banking law to authorize credit unions to invest in bank certificate of deposits and such other investments as the Superintendent of DFS deems permissible.
Section 4. Amends subdivision 21 of section 454 of the banking law to increase the per centum of capital that can be invested in real property owned by the credit union and improvements thereon for the purpose of conducting business.
Section 5. Provides that this act shall take effect on the ninetieth day.
Justification:
State chartered credit unions remain an important component of the financial services industry. A healthy dual chartering system and the ability for credit unions to reach as many New Yorkers in need of their products and services are essential elements toward their continued success. The revisions create an attractive state charter for credit unions making it a viable alternative to the federal credit union charter and enticing more credit unions to convert from the federal charter. This is consistent with DFS's stated mission of encouraging conversions of institutions to the state charter. More state charters mean more direct oversight by the State of 100% locally owned financial institutions and more revenue from operating and examination assessments.
Prior Legislative History:
This is a new bill.
Fiscal Implications For State And Local Governments:
To be determined.
Effective Date:
This act shall take effect on the ninetieth day after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.