Senate Bill S5145

2023-2024 Legislative Session

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

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Banks Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions

2023-S5145 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §§451, 454 & 461, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S1931
2011-2012: S1488
2013-2014: S2912
2015-2016: S3442
2017-2018: S3622
2019-2020: S4532
2021-2022: S4383

2023-S5145 (ACTIVE) - Summary

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

2023-S5145 (ACTIVE) - Sponsor Memo

2023-S5145 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5145
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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.
   § 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.
                                                            LBD07186-01-3
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.