§ 454. General powers. In addition to the powers conferred by the
provisions of this chapter, a credit union shall, subject to the
restrictions and limitations contained in this article, in its bylaws,
and in any regulations promulgated by the superintendent, or in any
regulations of the superintendent of financial services as may be
specifically authorized under this section, have the following powers:

1. To issue and receive payments on, shares, share drafts, and share
certificates, subject to such terms, rates, and conditions as are
established by its board of directors, from its members and 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
survivorship, 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.

2. To act as trustee under a retirement plan established pursuant to
the provisions of the act of congress entitled "Self-employed
Individuals Tax Retirement Act of 1962," and provisions of law contained
therein, as amended; provided that the provisions of such retirement
plan require the funds of such trust to be invested exclusively in share
accounts of insured state and federally chartered credit unions. In the
event that any such retirement plan, which, in the judgment of the
credit union, constituted a qualified plan under the provisions of said
self-employed individuals tax retirement act of nineteen hundred
sixty-two, and provisions of law contained therein, as amended, and the
regulations promulgated thereunder at the time the trust was established
and accepted by the credit union, is subsequently determined not to be
such a qualified plan or subsequently ceases to be such a qualified
plan, in whole or in part, the credit union may, nevertheless, continue
to act as trustee of any shares theretofore made under such plan and to
dispose of the same in accordance with the directions of the
shareholders and the beneficiaries thereof. No credit union, in respect
to shares purchased under this subdivision, shall be required to
segregate such shares from other shares of such credit union; provided,
however, that the credit union shall keep appropriate records showing in
proper detail all transactions engaged in under the authority of this
subdivision.

3. To act as trustee of an individual retirement account established
pursuant to the provisions of the act of congress entitled "Employee
Retirement Income Security Act of 1974," and provisions of law contained
therein, as amended; provided that the provisions of the written
governing instrument creating the trust require the funds of such trust
to be invested exclusively in share accounts of insured state and
federally chartered credit unions. In the event that any such individual
retirement account, which, in the judgment of the credit union,
constituted a qualified individual retirement account under the
provisions of said employee retirement income security act of 1974, and
provisions of law contained therein, as amended, and the regulations
promulgated thereunder at the time the trust was established and
accepted by the credit union, is subsequently determined not to be such
a qualified individual retirement account or subsequently ceases to be
such a qualified individual retirement account, in whole or in part, the
credit union may, nevertheless, continue to act as trustee of any shares
theretofore purchased under such individual retirement account and to
dispose of the same in accordance with the directions of the shareholder
and the beneficiaries thereof. No credit union, in respect to shares
purchased under this subdivision, shall be required to segregate such
shares from other shares of such credit union; provided, however, that
the credit union shall keep appropriate records showing in proper detail
all transactions engaged in under the authority of this subdivision.

4. To charge an entrance fee to any person who has applied for and
been elected to membership.

5. To charge a reasonable fee for the transfer of its shares.

6. (a) To lend money to its members at the rate or rates agreed to by
the credit union and the borrower upon such terms and conditions as are
established by its board of directors and subject to such regulations
and restrictions as the superintendent of financial services finds
necessary and proper.

(b) The knowingly taking, receiving, reserving, or charging a greater
rate of interest than permitted by law shall be held and adjudged a
forfeiture of the entire interest which the note or other evidence of
debt carries with it, or which has been agreed to be paid thereon. If
such greater rate of interest has been paid, the person paying the same
or his legal representatives may recover twice the entire amount of the
interest thus paid from the credit union.

(c) (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.

(ii) Subparagraph (i) of this paragraph does not apply in the case of:
(A) a credit union chartered for the purpose of making, or that has a
history of primarily making, member business loans to its members, as
determined by the superintendent; or (B) a credit union that serves
predominantly low-income members, as defined by the superintendent, or
which is a community development financial institution as defined in 12
U.S.C. 4702; or (C) a credit union excepted from the requirements of
such subparagraph (i) by the superintendent where such credit union is
seeking an exception from any federal limits on member business loans to
the same extent as permitted to federally-insured state credit unions
pursuant to the Federal Credit Union Act and regulations related
thereto, provided that such credit union demonstrates to the
satisfaction of the superintendent that such exception would be
consistent with the declaration of policy as set forth in section ten of
this chapter.

(iii) For purposes of this paragraph the term "member business loan"
and the term "net worth" shall have the same meaning as such terms are
defined in 12 U.S.C. 1757a.

7. (a) To issue credit cards, debit cards, and similar devices to
allow members to make purchases and to access their loans, lines of
credit, shares and deposits;

(b) To collect, receive and disburse funds in connection with the
issuance of negotiable checks, money orders, travelers checks and other
payment instruments to members, and to charge a fee for such services;

(c) To rent safe deposit boxes to members; and

(d) To provide any related financial services to members which are not
expressly authorized pursuant to this article, including but not limited
to electronic funds transfers and correspondent services; provided,
however, that any credit union which seeks to offer any such related
financial services which it has not offered prior to June twentieth, two
thousand three shall, not less than sixty days prior to offering such
services, notify the superintendent in writing of its intention to offer
such services. If the superintendent does not object in writing to the
offering of such services within sixty days after the receipt of the
notice, the credit union may offer such services to its members.

8. To deposit any moneys received by it, and not lent to members, in
one or more state or federally chartered banking organizations or
branches of foreign banking corporations which are insured by the
Federal Deposit Insurance Corporation, by the National Credit Union
Share Insurance Fund, or by another agency of the United States
government.

9. To borrow money subject to such regulations and restrictions as the
superintendent of financial services finds necessary and proper from any
source in an aggregate amount not exceeding fifty percent of assets
without the written approval of the superintendent.

10. To impose financing charges and late charges in the event of late
payment or default on loans and recover reasonable costs and expenses,
including collection costs and reasonable attorneys' fees incurred both
before and after judgment.

11. To suspend or expel members, as provided in section four hundred
sixty-four of this article.

12. To impress and enforce a lien upon the shares, share accounts,
share certificates, deposits, dividends, and accumulation of interest on
the shares, accounts, certificates, and deposits of any member to the
extent of any sums owed the credit union by said member and any loans
made to him or her directly or indirectly or on which he or she is
surety, guarantor, or endorser.

13. To cancel the shares of any member who withdraws or is expelled
and apply the withdrawal value thereof to the liquidation of such
member's indebtedness to the corporation.

14. Subject to the limitations contained in subdivision seven of
section four hundred fifty-six of this article, to hold shares in and
make loans to other credit unions, whether state or federally chartered.

15. To conduct its business at automated teller machines,
point-of-sale terminals, shared service centers, and similar facilities
subject to regulations which may be promulgated by the superintendent of
financial services. Such facilities shall not be deemed to be stations
and shall not be subject to any of the provisions of this chapter
applicable to stations.

16. To issue shares to and accept deposits from a member in the name
of a minor. Such shares and deposits shall be held for the minor's
exclusive right and benefit and free from control or lien of all other
persons, except creditors. The withdrawal value of such shares or
deposits shall be paid to the person in whose name such shares or
deposits are held. A receipt or acquittance of a minor shall be valid
and sufficient release and discharge to such credit union for all
payments made on account of such shares or deposits.

17. To issue shares to and accept deposits from a member, which are
held in the name of a member in trust for a beneficiary or in the name
of a non-member in trust for a beneficiary who is a member. No
beneficiary, unless a member in his or her own right, shall be permitted
to vote, obtain loans, or hold office or be required to pay an entrance
or membership fee. Payment of part or all of such a trust account to the
party in whose name the account is held shall, to the extent of such
payment, discharge the liability of the credit union to that party and
to the beneficiary, and the credit union shall be under no obligation to
see to the application of such payment. In the event of the death of the
party who owns a trust account, if the credit union has been given no
other written notice of the existence or terms of any trust and has not
received a court order as to disposition of the account, the account's
funds and any dividends or interest thereon shall be paid to the
beneficiary.

18. (a) To invest its funds in: (i) Those securities authorized as
permissible investments for savings banks by subdivisions one, two,
three, four, twelve, paragraph (a) of subdivision twelve-a, and
subdivisions fifteen, seventeen, twenty-seven and twenty-eight-a of
section two hundred thirty-five of this chapter and such other
investments as the superintendent deems permissible.

(ii) Advances of federal funds as authorized for savings banks by
subdivision twelve-b of section two hundred thirty-five of this chapter.

(iii) Common trust units of a credit union investment pool organized
for the purchase of:

(A) obligations of the United States of America, or securities fully
guaranteed as to principal and interest thereby;

(B) obligations issued by banks for cooperatives, federal land banks,
federal intermediate credit banks, federal home loan banks, the Federal
Home Loan Bank Board, or any corporation designated in section 846 of
Title 31 of the United States Code as a wholly owned government
corporation, or in obligations, participations, or other instruments of
or issued by, or fully guaranteed as to principal and interest by, the
Federal National Mortgage Association or the Government National
Mortgage Association, or in mortgages, obligations, or other securities
which are or ever have been sold by the Federal Home Loan Mortgage
Corporation pursuant to section 1454 or 1455 of Title 12 of the United
States Code, or in obligations or other instruments or securities of the
Student Loan Marketing Association;

(C) participation certificates evidencing beneficial interests in
obligations, or in the right to receive interest and principal
collections therefrom, which obligations have been subjected by one or
more government agencies to a trust or trusts for which any executive
department, agency, or instrumentality of the United States (or the head
thereof) has been named to act as trustee; provided that such investment
pool has been approved by the superintendent; or

(D) securities, obligations or other instruments of, or issued by, any
agency of the United States.

(iv) Where the assets of a credit union are in excess of three million
dollars, such credit union is further authorized to invest its funds in
the securities enumerated in subdivisions thirteen and fourteen of
section two hundred thirty-five of this chapter, subject in each case to
those limitations applicable to such investment in the case of savings
banks.

(b) All such securities, except those purchased in a common trust unit
pursuant to subparagraph (iii) of paragraph (a) of this subdivision,
must be registered in the name of the credit union; provided that where
any such securities are non-registerable, except those purchased in a
common trust investment pool, as hereinbefore provided, they shall be
placed in the custody of a bank, trust company, national bank, or state
or federal corporate credit union in the name of the credit union, and
shall be retained by such bank, trust company, national bank, or state
or federal corporate credit union until such securities are liquidated
at maturity or sold, in either of which events the proceeds of such
securities shall be deposited in the name of the credit union in any
institution specified in subdivision eight of this section.

(c) Notwithstanding the provisions of this subdivision, a credit union
may invest the lesser of ten percent of its capital or net worth, but at
least ten thousand dollars, in the shares of investment companies;
provided that the portfolio of such investment company consists solely
of securities in which credit unions are permitted to invest directly.
The term "investment companies" means open-end and close-end investment
companies and unit investment trusts as these terms are used in an Act
of Congress entitled "Investment Company Act of 1940."

19. Subject to regulations and restrictions of the superintendent of
financial services, a credit union may invest its funds in and make
loans to credit union organizations; provided that such loans or
investments shall be approved by the board of directors. No such loan or
investment shall be made by a credit union pursuant to this subdivision
if the amount of such loan or investment exceeds three per centum of the
total sum due to the members on shares and deposits. For the purpose of
this subdivision, a credit union organization is any organization
established primarily to serve the needs of its member state and federal
credit unions, and whose business relates to the daily operations of the
credit unions it serves.

20. To purchase, sell, service, pledge or discount, or otherwise
receive or dispose of, eligible obligations to the same extent as
authorized pursuant to Title 12 U.S.C. section 1757(13) and any
regulations promulgated thereunder, as such laws or regulations may be
amended from time to time.

21. To purchase, hold, lease and convey a plot whereon there is or may
be erected a building suitable for the transaction of its business, from
portions of which not required for its own use a revenue may be derived,
and a plot whereon parking accommodations are or are to be provided,
with or without charge, primarily for its members or employees or both;
provided that the net aggregate of all investments of any credit union
in such plots and building shall be limited to six per centum of the
capital and retained earnings of such credit union, except with the
approval of the superintendent.

22. To enter into contracts.

23. To sue and to be sued in all courts and to participate in actions
and proceedings, whether judicial, arbitrative, or otherwise, in like
cases as natural persons.

24. To have a corporate seal, and to alter such seal at pleasure, and
to use it by causing it or a facsimile to be affixed or impressed or
reproduced in any other manner.

25. To make donations, irrespective of corporate benefit, for the
public welfare or for community fund, hospital, charitable, educational,
scientific, civic, or similar purposes, and, in time of war or other
national emergency, in aid thereof.

26. To elect or appoint officers, employees, and other agents of the
credit union, define their duties, fix the compensation of employees and
other agents, and to indemnify credit union officials, committee
members, and employees.

27. To have perpetual existence.

28. To honor requests for withdrawals of member accounts, whether
shares or deposits, in any manner approved by the credit union's board
of directors, including, without limitation because of enumeration,
requests in person, by telephone, by mail, by negotiable or
non-negotiable order, by electronic communication, or otherwise. The
board of directors may, at any time, require members to give, in
writing, not more than sixty days' notice of intention to withdraw the
whole or any part of the amounts paid in by them, except that this
requirement shall not apply to amounts in a share draft or checking
account. In the event that any credit union shall require that notice be
given before such amounts may be withdrawn, it shall, before or upon the
day such requirement is made effective, notify the superintendent by
telephone, other electronic means or in writing that such requirement
has been made.

29. To, either on an individual or participation basis, establish or
maintain an accounting service center, the functions, facilities, and
operations of which are limited to providing data processing services.
As used in this subdivision, the term "data processing services" means
the maintenance of bookkeeping, accounting, or other records related to
the purposes and functions of a credit union, primarily by mechanical or
electronic methods, and the furnishing of reports and information
derived from such records. Participation in the accounting service
center may be by means of a partnership or other non-corporate
arrangement between or among the participating entities or by
participation in an accounting service center corporation organized for
the sole purpose of providing data processing services. A credit union's
individual or proportionate ownership of the accounting service center
shall not exceed two percent of its members' shareholdings.

30. To acquire and lease personal property, and to hold, assign,
pledge, sell or otherwise dispose of such personal property, to the same
extent as authorized under subdivision twelve of section ninety-six of
this chapter, subject to such limitations and conditions as the
superintendent of financial services may from time to time prescribe by
general regulation.

31. To hold membership in other credit unions organized under this
article or under federal law or any other credit union act, and in
associations and organizations controlled by or fostering the interests
of credit unions, including a central liquidity facility organized under
state or federal law.

32. To execute and deliver for its members such guarantees as may be
incidental or usual in the transfer of investment securities.

33. Notwithstanding any other provision of this article to the
contrary, to participate in the minority - and women-owned business
development and lending program, as established in section 16-c of
section 1 of chapter 174 of the laws of 1968, constituting the urban
development corporation act, to the extent that such program allows
participation by credit unions.

33-a. To accept moneys deposited by the commissioner of taxation and
finance or the comptroller as linked deposits and make linked loans
pursuant to article fifteen of the state finance law and to pledge
assets or furnish other security satisfactory in form and amount to the
depositor, for repayment of such moneys.

34. To have and exercise all other powers that are necessary or
appropriate to enable it to carry out its purpose.

35. To participate in loans to credit union members jointly with other
credit unions, credit union organizations, or other banking
organizations pursuant to written policies established by the board of
directors; provided that a credit union which originates a loan for
which participation arrangements are made shall retain an interest in at
least ten percent of the face amount of the loan. The member of the
originating credit union benefiting from the proceeds of the loan need
not be within the field of membership of the other credit unions
participating in the loan.

36. To invest its funds in a collateralized mortgage obligation/real
estate mortgage investment conduit. A credit union may invest in a fixed
or variable rate collateralized mortgage obligation/real estate mortgage
investment conduit, subject to the same extent and under the same
conditions as federal credit unions are authorized to so invest,
pursuant to the Federal Credit Union Act (12 U.S.C 1757(15)(B)) and any
regulations related thereto, as amended.

37. To engage in a "savings promotion" in accordance with section
nine-v of this chapter and subject to any regulations promulgated by the
superintendent. The superintendent shall consult with the state gaming
commission before proposing any such regulations or any amendments
thereto. Such regulations shall ensure that:

a. no participant in a savings promotion is charged any fee that would
constitute, directly or indirectly, consideration for participation in
such savings promotion; and

b. no participant in a savings promotion foregoes, directly or
indirectly, any interest that would constitute consideration for
participation in such savings promotion.