What's happening
This bill allows credit unions and federal credit unions to participate in New York's banking development district program, expanding their eligibility for municipal deposits.
Why it matters
Expands access to banking services in underserved areas. By allowing credit unions and federal credit unions to participate in the Banking Development District (BDD) program, the bill aims to increase the number of financial institutions offering services in communities that lack adequate banking options.
Enables more competition for municipal deposits. Credit unions and federal credit unions will now be eligible to receive municipal (public) deposits within the framework of the BDD program, potentially leading to better rates and services for local governments due to increased competition.
Targets community needs and financial inclusion. The amendment specifically allows credit unions to serve persons or organizations in communities, neighborhoods, or rural districts identified as needing banking services, supporting broader financial inclusion and potentially reducing reliance on non-bank alternatives.
Requires regulatory oversight and safeguards. Deposits of municipal funds in participating credit unions will remain subject to the same legal and regulatory requirements as those in banks, ensuring continued protection and oversight of public monies.
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Who cares
Headline styles
Let Credit Unions Join Program
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- 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.
Include Credit Unions in Program
In Senate Committee · Banks · Sponsor Velmanette Montgomery
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5776
2017-2018 Regular Sessions
IN ASSEMBLY
February 15, 2017
Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to including credit unions and federal credit unions within provisions regarding banking development district program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 5 of section 96-d of the banking law, as added by chapter 526 of the laws of 1998, paragraph (a) as amended by chapter 328 of the laws of 1999, paragraph (b) as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended to read as follows:
5. (a) Notwithstanding the provisions of subdivision two of section two hundred thirty-seven of this chapter; for the purposes of this section, paragraph c of subdivision two of section ten of the general municipal law, subdivision six of section one hundred five of the state finance law and section four hundred eighty-five-f of the real property tax law, any reference to a bank, trust company or national bank shall be deemed to include a savings bank, savings and loan association, federal savings and loan association [or], federal savings bank, credit union or federal credit union; provided, however, that such provisions of law do not grant a savings bank, savings and loan association, federal savings and loan association [or], federal savings bank, a credit union or a federal credit union eligibility to accept municipal or public funds or municipal or public moneys other than for the limited purposes of the establishment of a branch in a banking development district pursuant to this section. Any such municipal or public funds or moneys shall be deposited only at the branch established pursuant to this section, and any municipal funds or moneys may be deposited only by the sponsoring municipality in which the branch and banking development district are located; provided further that any such municipal or public
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01054-01-7
A. 5776 2
funds or moneys shall be subject to the same requirements which apply to municipal or public funds or moneys deposited in a bank, trust company or national bank and shall also be subject to the provisions of section one hundred five of the state finance law or section ten of the general municipal law relating to such deposits.
(b) Notwithstanding any other provision of law, the superintendent of financial services shall promulgate rules and regulations to authorize the participation of savings banks, savings and loan associations, federal savings banks [and], federal savings and loan associations, credit unions and federal credit unions in the program established pursuant to this section.
§ 2. Paragraph (f) of subdivision 1 of section 451-a of the banking law, as amended by chapter 153 of the laws of 2015, is amended and a new paragraph (g) is added to read as follows:
(f) Any incorporated or unincorporated organization composed principally of persons eligible to membership in the credit union and that organization's employees[.]; or
(g) Any person or organization located within a local community, neighborhood, or rural district where there is a demonstrated need for banking services as determined by the superintendent.
§ 3. This act shall take effect January 1, 2019; provided, that the amendments to 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 as provided in section 4 of chapter 526 of the laws of 1998, as amended.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.