What's happening
This bill allows low income credit unions in New York City to participate in the state's banking development district program.
Why it matters
Expands financial options for underserved communities. By allowing low income credit unions in large cities like New York City to join the banking development district (BDD) program, the bill could help bring more banking services to neighborhoods that often lack access to traditional banks.
Enables targeted public investment. The change permits municipal or public funds to be deposited specifically in branches of low income credit unions established under the BDD program, but only for the limited purpose of supporting those branches—potentially boosting their stability and ability to serve local residents.
Promotes economic inclusion. By officially recognizing low income credit unions as eligible for development incentives typically reserved for banks, the legislation may foster more competition and innovation in delivering affordable financial products to low- and moderate-income New Yorkers.
Requires regulatory oversight. The bill directs the financial services superintendent to create rules for this expanded participation, ensuring proper oversight and consistency with other financial institutions in the BDD program.
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Who cares
Headline styles
Include Credit Unions in Program
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
Companion bills
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 Brian Kavanagh
Include Low-Income Credit Unions
Assembly Floor Calendar · Sponsor Brian Kavanagh
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2021
2017-2018 Regular Sessions
IN SENATE
January 11, 2017
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to including low income credit unions in the 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, and 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 or, in cities having a population of one million or more persons, any low income credit union as designated by section four hundred fifty-a of this chapter or any federal credit union that has been designated a low income credit union by the National Credit Union Administration; 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 or, in cities having a population of one million or more persons, any low income credit union as designated by section four hundred fifty-a of this chapter or any federal credit union that has been designated a low income credit union by the National Credit Union Administration eligibility to accept municipal or public funds or municipal or public moneys other than for the limited purposes of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00850-01-7
S. 2021 2
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 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 or, in cities having a population of one million or more persons, any low income credit union as designated by section four hundred fifty-a of this chapter or any federal credit union that has been designated a low income credit union by the National Credit Union Administration in the program established pursuant to this section.
§ 2. This act shall take effect immediately, provided, however, 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 repealed therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
Section 1 amends Section 96-d of the banking law to include low-income credit unions as defined in state law or by the National Credit Union Association in the banking development districts program in the City of New York.
Section 2 provides the effective date.
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 easily become a part of the financial mainstream, promote economic development by enhancing access to capital for local businesses.
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 as 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.
Legislative history
2016: S157/A5745 - COMMITTED TO RULES/ referred to banks 2015: S157/A5745 - REFERRED TO BANKS/ referred to banks 2014-2013: S194/A1118 - Referred to Banks 2012-2011: S34/A5932 - Referred to Banks 2010-2009: S5279/A238 - Advanced to Third Reading Senate/Referred to Banks 2007-2008: A8883 - Referred to Banks (Kavanagh)
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.
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