NY A05776

Amends Banking Law Section 96-d to include credit unions and federal credit unions in the definition of "bank, trust company or national bank" for purposes of the banking development district program.

Authorizes the Superintendent of Financial Services to promulgate rules and regulations allowing savings banks, savings and loan associations, federal savings banks, federal savings and loan associations, credit unions, and federal credit unions to participate in the banking development district program.

Restricts municipal or public funds deposited at branches established under this program to the sponsoring municipality's branch location and subjects such deposits to the same requirements as deposits in traditional banks.

Expands credit union membership eligibility to include 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.

Takes effect January 1, 2019, with provisions that amendments to Section 96-d shall be repealed concurrent with the scheduled repeal of that subdivision in 2019.