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

                                  8693

                          I N  A S S E M B L Y

                            February 3, 2014
                               ___________

Introduced by M. of A. ROBINSON -- read once and referred to the Commit-
  tee on Banks

AN  ACT to amend the banking law, in relation to including credit unions
  and federal credit unions within provisions regarding banking develop-
  ment  district  program  and  providing  for  the  repeal  of  certain
  provisions upon expiration thereof

  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, 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, feder-
al 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
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

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

                                                           LBD08033-02-4

A. 8693                             2

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.
  S 2. Subdivision 2 of section 451 of the banking  law  is  amended  by
adding a new paragraph (c-1) to read as follows:
  (C-1)  FOR  THE  PURPOSES OF SECTION NINETY-SIX-D OF THIS CHAPTER, THE
CREDIT UNION MAY INCLUDE IN ITS MEMBERSHIP 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.
  S  3.  This  act shall take effect January 1, 2016; provided, however,
that the amendments to subdivision 2 of section 451 of the  banking  law
made  by  section two of this act shall expire and be deemed repealed on
the same date and in the same manner as section 4 of chapter 526 of  the
laws  of 1998, as amended; and provided, further, 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; and provided, however, that any branch established
prior to the expiration and repeal of the provisions of this  act  by  a
credit  union  or federal credit union in a banking development district
pursuant to this act shall continue to operate in  accordance  with  the
provisions of the banking law as amended by this act and remain eligible
for all the rights and privileges authorized by this act.