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.

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S194-2013 Actions

• Jan 9, 2013: REFERRED TO BANKS

S194-2013 Memo

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.

S194-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     194

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  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 ASSEM-
  BLY, 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, 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
  establishment of a branch in a banking development district pursuant  to

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD00215-01-3

 S. 194                              2

  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 munici-
  pal 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  banking  board
  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 DESIG-
  NATED 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.
    S 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  subdivi-
  sion and shall be deemed repealed therewith.