NY A05932

Amends the banking law to include low-income credit unions in the banking development district program, but only in cities with a population of one million or more persons.

Expands the definition of eligible financial institutions to include any low-income credit union designated under Section 450-A of the banking law or any federal credit union designated as a low-income credit union by the National Credit Union Administration.

Low-income credit unions participating in the program may accept municipal and public funds only for establishing a branch in a banking development district and only from the sponsoring municipality.

Municipal and public funds deposited with participating credit unions must comply with the same requirements as deposits in traditional banks and be subject to state finance law and general municipal law provisions.

Directs the banking board to promulgate rules and regulations authorizing the participation of eligible credit unions in the banking development district program.