S T A T E   O F   N E W   Y O R K
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                                  3442

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 9, 2015
                               ___________

Introduced  by  Sens. PARKER, PERKINS -- 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 credit union memberships
  and general powers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 2 of section 451 of the banking law, as amended
by chapter 502 of the laws of 2014, is amended to read as follows:
  2. The qualifications for membership.
  [Such qualifications for membership shall be established in accordance
with the provisions of section four hundred fifty-one-a of this article,
except  that  such section shall not apply to a corporate credit union.]
THE MEMBERSHIP OF A CREDIT UNION SHALL BE DETERMINED  BY  THE  BOARD  OF
DIRECTORS  OF  SUCH  CREDIT  UNION AND SHALL CONSIST OF PERSONS WHO HAVE
BEEN DULY ADMITTED MEMBERS.
  S 2. Subparagraph (i) of paragraph (c) of subdivision 6 of section 454
of the banking law, as added by chapter 660 of  the  laws  of  2004,  is
amended to read as follows:
  (i)  [No  credit  union  may  make any member business loan that would
result in a total amount of such loans outstanding at that credit  union
at  any  one time equal to more than the lesser of 1.75 times the actual
net worth of the credit union, or  1.75  times  the  minimum  net  worth
required  under  12  U.S.C. 1790d(c)(1)(A) for a credit union to be well
capitalized.] (A) NO CREDIT UNION SHALL MAKE ANY MEMBER A BUSINESS  LOAN
THAT  WOULD  RESULT  IN  THE NET MEMBER BUSINESS LOAN BALANCE TO ANY ONE
MEMBER EXCEEDING THE GREATER OF:
  (1) TWENTY-FIVE PERCENT OF THE CREDIT UNION'S NET WORTH, OR
  (2) TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (B) THE AGGREGATE LIMIT ON A CREDIT UNION'S NET BUSINESS LOAN BALANCES
SHALL BE THE GREATER OF:
  (1) TWENTY-FIVE PERCENT OF THE CREDIT UNION'S TOTAL ASSETS, OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06484-02-5
              

S. 3442                             2

  (2) THE LIMIT ESTABLISHED FOR FEDERAL CREDIT UNIONS.
  S  3.  Subparagraph  (i) of paragraph (a) of subdivision 18 of section
454 of the banking law, as amended by chapter 502 of the laws  of  2014,
is amended to read as follows:
  (i) Those securities authorized as permissible investments for savings
banks  by  subdivisions one, two, three, four, twelve, SUBPARAGRAPH FIVE
OF PARAGRAPH (A) OF SUBDIVISION NINE, paragraphs (a) and (b) of subdivi-
sion twelve-a, [and] subdivisions fifteen, seventeen, PARAGRAPH  (A)  OF
SUBDIVISION  TWENTY,  SUBPARAGRAPHS  ONE  AND  ONE-A OF PARAGRAPH (A) OF
SUBDIVISION TWENTY-ONE, SUBDIVISIONS TWENTY-FOUR-D, twenty-seven  [and],
TWENTY-EIGHT,  twenty-eight-a,  TWENTY-NINE  AND  THIRTY  of section two
hundred thirty-five of this chapter and such other  investments  as  the
superintendent deems permissible.
  S  4.  Subdivision  2  of  section 461 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
  2. 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  [a  substantial  portion  of]  its  actual  potential
membership  is  employed,  ATTENDING  SCHOOL  or  residing,  one or more
stations for the conduct of its business [provided that before any  such
station  or  stations  shall be opened or maintained or removed to a new
location:
  (a) Its board of directors shall submit to the superintendent a  writ-
ten  application  setting  forth  the  reasons therefor and the proposed
location of such station or stations.
  (b) The superintendent shall have given his written approval thereto].
  S 5. Subdivision 1 of section 454 of the banking law,  as  amended  by
chapter 679 of the laws of 2003, is amended to read as follows:
  1.  To  issue and receive payments on, shares, share drafts, and share
certificates, subject to such terms, rates, and conditions as are estab-
lished by its board of directors, from:
  (A) its members;
  (B) NONMEMBERS WHO OR WHICH  MAY  BE  NATURAL  PERSONS,  CORPORATIONS,
LIMITED LIABILITY COMPANIES, PARTNERSHIPS OR OTHER LEGAL ENTITIES;
  (C)  AN  OFFICER,  EMPLOYEE  OR  AGENT OF THOSE NONMEMBER UNITS OF THE
FEDERAL, STATE, INDIAN TRIBAL OR LOCAL GOVERNMENTS AND POLITICAL  SUBDI-
VISIONS; and
  (D) from other credit unions, both state and federally chartered.
  A  member  may  designate any person or persons to own shares or share
certificates with him or her in joint tenancy with the right  of  survi-
vorship,  but  no joint tenant shall be permitted to vote, obtain loans,
or hold office, unless he or she is within the field of  membership  and
is a qualified member.
  S  6. This act shall take effect immediately provided, that the amend-
ments to subdivision 2 of section 451 of the banking law made by section
one of this act shall take effect on the  same  date  and  in  the  same
manner  as  section  1  of chapter 502 of the laws of 2014; and provided
further that the amendments to subparagraph  (i)  of  paragraph  (c)  of
subdivision  18  of section 454 of the banking law made by section three
of this act shall take effect on the same date and in the same manner as
section 3 of chapter 502 of the laws of 2014.