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
              

 S. 5145                             2
 
   (2) THE LIMIT ESTABLISHED FOR FEDERAL CREDIT UNIONS.
   §  3.  Subparagraph  (i) of paragraph (a) of subdivision 18 of section
 454 of the banking law, as amended by chapter 153 of the laws  of  2015,
 is amended to read as follows:
   (i) Those securities authorized as permissible investments for savings
 banks  by subdivisions one, two, three, four, SUBPARAGRAPH FIVE OF PARA-
 GRAPH (A) OF SUBDIVISION NINE,  SUBDIVISION  twelve,  paragraph  (a)  of
 subdivision  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.
   § 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].
   §  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.
   § 6. This act shall take effect immediately.