Source: https://www.nysenate.gov/legislation/bills/2019/s727/amendment/a
Timestamp: 2019-10-23 20:35:55
Document Index: 313752077

Matched Legal Cases: ['§96', '§4', '§  2', '§ 3', '§ 2', '§  4', '§  3']

NY State Senate Bill S727A
senate Bill S727A
Relates to the banking development district program
Get Status Alerts for S727A
substituted for a3320
Jun 06, 2019 amended on third reading (t) 727a
Feb 27, 2019 1st report cal.181
S727A
Feb 27, 2019 - Banks committee Vote
Committee Vote: Feb 27, 2019
S727 - Details
Amd §96-d, Bank L; amd §4, Chap 526 of 1998
2015-2016: S5521
2017-2018: S5187, A6949
S727 - Summary
Relates to the banking development districts program.
S727 - Sponsor Memo
BILL NUMBER: S727
TITLE OF BILL:  An act to amend the banking law, in relation to
including credit unions and federal credit unions within provisions
regarding banking development district program
To include credit unions and federal credit unions within the definition
of bank or trust company for the purpose of provisions regarding banking
Section 1. Amends subdivision 5 of section 96-d of the banking law, as
added by chapter 526 of the laws of 1998, to include credit unions and
federal credit unions in the definition of a bank, trust company, or
Section 2. Subdivision 1 of section 451-a of the banking law, as added
by chapter 153 of the laws of 2015 , is amended to state that for the
purposes of section 96-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.
Chapter 204 of the laws of 1997 authorized the creation of a banking
development district program, which enables municipalities and New York
State to offer certain economic incentives to encourage the establish-
ment of commercial bank branches in areas where there is a demonstrated
need for banking services. Chapter 526 of the laws of 1998 incorporated
savings and loans into this program. This legislation includes credit
unions within the economic development program.
Credit unions will be able to offer small business services, such as
member business lending, similar to those currently offered by commer-
cial banks and savings and loans. By enabling credit unions to partic-
ipate in this program there will be more opportunities for munici-
palities to work with different types of banking institutions to
encourage better banking services in developing areas.
A3134 of 2008-2009.
A9352 of 2009-2010.
A2549 of 2013-2014 (enacting clause stricken)
A8693 of 2014
This act shall take effect January 1, 2021.
S727 - Bill Text download pdf
Introduced   by  Sens.  MONTGOMERY,  BROOKS,  COMRIE,  HOYLMAN,  PARKER,
to be committed to the Committee 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
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
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
LBD03497-01-9
S. 727                              2
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
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
§  2.  Paragraph  (f) of subdivision 1 of section 451-a of the banking
law, as amended by chapter 153 of the laws of 2015, is amended and a new
paragraph (g) is added to read as follows:
(f) Any incorporated or unincorporated organization  composed  princi-
pally  of  persons  eligible  to membership in the credit union and that
organization's employees[.]; OR
(G) 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.
§ 3. This act shall take effect January 1, 2021;  provided,  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, as amended.
Credit Union Bill - Ending Banking Desert in Low Income Communities
S727A (ACTIVE) - Details
S727A (ACTIVE) - Summary
S727A (ACTIVE) - Sponsor Memo
BILL NUMBER: S727A
TITLE OF BILL:  An act to amend the banking law, in relation to the
banking development district program; to amend chapter 526 of the laws
of 1998, amending the banking law relating to participation in the bank-
ing development districts program, in relation to the effectiveness
PURPOSE: OF THE BILL:
This bill would amend the Banking Law to expand access to banking
services in communities where there is a demonstrated need for addi-
tional products and services.
Section 1 of the bill would limit the designation of a banking develop-
ment district to fourteen years, yet allow for additional extensions in
five or 10 year increments.
Section 3 of the bill would amend Banking Law S 96-d (5) to allow feder-
al and state credit unions to participate in the banking development
Sections 2 and 4 of the bill would set forth the effective dates.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IN. APPLICABLE):
The amendments removed the requirement to offer certain products and
Many communities in New York State lack consumer-banking services. In
1997, the Banking Development District (BDD) program was enacted to
incentivize banks to locate branches in communities designated as under-
served by the Department of Financial. Such communities either have no
available financial service options, or only offer alternative(and often
problematic) financial service options like check cashers and Pawn
Under the BDD program, banks that open branches in underserved communi-
ties are eligible to receive below market-rate deposits. Such deposits
lower the financial risk the branches may incur when opening in an
underserved community.
Currently, however, credit unions are currently ineligible to partic-
ipate in the BDD program. Because banks and other eligible financial
institutions have submitted a modest number of applications over the
past twenty years, the program should be expanded to include credit
unions to encourage additional banking services in underserved communi-
At the same time, it is also appropriate to restrict the unlimited dura-
tion of a BDD designation. Once a banking deficit in an under served
community is corrected, the incentives provided under the BDD program
are no longer needed. A fourteen-year designation limit (with unlimited
extensions as necessary) would make the BDD program more efficient and
allow for the allocation of resources to other communities.
FISCAL. IMPLICATIONS:
S727A (ACTIVE) - Bill Text download pdf
727--A
Cal. No. 181
Introduced  by  Sens. MONTGOMERY, BROOKS, COMRIE, HOYLMAN, PARKER, SALA-
ZAR, SANDERS, STAVISKY -- read twice and  ordered  printed,  and  when
printed  to be committed to the Committee on Banks -- reported favora-
AN  ACT to amend the banking law, in relation to the banking development
district program; to amend chapter 526 of the laws of  1998,  amending
the  banking  law relating to participation in the banking development
districts program, in relation to the effectiveness thereof
Section  1. Subdivision 2 of section 96-d of the banking law, as added
by chapter 204 of the laws of 1997, is amended to read as follows:
2. A local government, in conjunction with a bank,  trust  company  or
national  bank,  may submit an application to the superintendent for the
designation of a banking development district. The superintendent  shall
issue  a  determination  on  such  an  application  within sixty days of
receiving such application. If an application is  approved,  the  super-
intendent shall transmit notification of [such approval] THE DESIGNATION
OF  A  BANKING  DEVELOPMENT  DISTRICT to the local government, the bank,
trust company or national bank, the state comptroller, the  commissioner
of  taxation and finance, the commissioner of the department of economic
development, the temporary president of the senate and  the  speaker  of
the assembly. THE DESIGNATION OF A BANKING DEVELOPMENT DISTRICT SHALL BE
VALID  FOR FOURTEEN YEARS. PRIOR TO THE EXPIRATION OF A BANKING DEVELOP-
MENT DISTRICT DESIGNATION, THE SUPERINTENDENT MAY EXTEND THE DESIGNATION
FOR ONE OR MORE ADDITIONAL FIVE OR TEN YEAR PERIODS.
§ 2. Section 4 of chapter 526 of the laws of 1998, amending the  bank-
ing  law  relating to participation in the banking development districts
LBD03497-02-9
S. 727--A                           2
program, as amended by chapter 46 of the laws of  2016,  is  amended  to
§  4.  This  act  shall  take  effect on the first day of January next
succeeding the date on which it shall have  become  a  law  and  SECTION
THREE OF THIS ACT shall remain in effect until January 1, 2023 when upon
such  date it shall expire and be deemed repealed; provided however that
any branch established prior to the expiration  and  repeal  of  SECTION
THREE  OF  this  act  by  a  savings bank, savings and loan association,
federal savings bank or federal savings and loan association in a  bank-
ing  development district pursuant to this act shall continue to operate
in accordance with this act and remain eligible for all the  rights  and
privileges authorized by this act.
§  3.  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 and paragraph (b) as further amended by section  104
UNION, OR FEDERAL CREDIT UNION; provided, however, that such  provisions
al  savings  and  loan  association  [or],  federal savings bank, CREDIT
UNION, OR 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
municipal or public funds or moneys deposited in a bank,  trust  company
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
(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
the  amendments to subdivision 5 of section 96-d of the banking law made
by section three of this act shall not affect the repeal of such  subdi-
vision and shall be deemed repealed therewith.