Provides criteria for membership in credit unions and permits the extension of certain services to nonmembers

1 Co-sponsor

• Bill Perkins

Title of bill

An act to amend the banking law, in relation to credit union memberships and general powers

Purpose or general idea of bill

This bill would expand the qualifications for membership into credit unions.

Summary of specific provisions

Section 1: Sets forth the qualifications for membership.

Section 2: States that no credit union shall make any member a business loan that would result in the net member business loan balance to any on member exceeding specific amounts.

Section 3: Authorized securities as permissible investments for savings banks.

Section 4: Subject to such regulations as the superintendent may adopt, any credit union, may open and maintain within or without the state in any locality in which its actual potential membership is employed, attending school or residing, one or more stations for the conduct of its business with provisions.

Section 5: Sets for the conditions as established by the board of directors to issue and receive payments on, shares, share drafts, and share certificates.

Section 6: This act shall take effect immediately.

Justification

State subsidized jobs provide low wages and poor benefits which increases the need for government services. The purpose of this bill is to improve the effectiveness of economic development expenditures. Take pressure off of state social services programs and improve the public health and welfare by ensuring that major state subsidies are used to support at least minimum living standards for working families.

Prior legislative history

2013-14: S.2912 - Referred to Banks 2011-12: S.1488 - Referred to Banks 2010: S.1931-A/A.260A - Referred to Banks 2007-08: A.2793 - Referred to Banks

Fiscal implications

To be determined.

Effective date

Immediately.