Public Deposits Granted to New York Credit Unions
In December, Gov. Andrew Cuomo signed legislation permitting New York credit unions to accept public deposits. Under the new law, credit unions can participate in the state’s Banking Development District Program.
According to the New York Credit Union Association, the BDD Program was created in 1997 to encourage financial institutions to establish branches in economically distressed communities throughout New York where there is a demonstrated need for banking services. Institutions that are approved for a BDD designation are eligible to receive up to $10 million in subsidized public deposits and other benefits, including below market-rate deposits from New York state. These deposits are intended to lower the financial risk that the branch may incur when opening in an underserved community, usually comprised of low- and moderate-income households.
Marijuana Banking Rules Issued
July 10, 2018 — Recently, under the direction of New York Governor Andrew Cuomo, the New York Department of Financial Services (DFS) issued guidance encouraging New York State chartered banks and credit unions to consider establishing banking relationships with New York medical marijuana-related businesses that are in full compliance with state laws and regulations.
DFS noted that it will not impose any regulatory action on any state-chartered banks or credit unions for establishing a banking relationship with a medical marijuana-related business if the financial institutions comply with the requirements of:
- The 2014 Financial Crimes Enforcement Network guidance;
- The guidance and priorities set forth in the Department of Justice’s 2013 memorandum from Deputy Attorney General James M. Cole; and
- Is subject to the institution’s own evaluation of the risks associated with offering products and services and its ability and systems to effectively manage those risks – as all DFS-regulated institutions do with regard to all their banking relationships.
NYCUA’s resource page gives full comparison of state v. fed charter
Jan. 8, 2018 — Looking for a comprehensive examination of the state charter versus the federal charter? Look no further than the New York Credit Union Association’s (NYCUA) “State Charter Resource Center” on the web, which includes a 30-slide presentation that looks at topics including taxation, field of membership, lending, trust powers, low-income designation and more. The website also includes a cost comparison of the federal versus the state charter, a rundown of the state charter conversion process (and checklist), and sample bylaws. The resources were developed by the NYCUA, it says, to “assist credit unions to better understand the state charter and how it compares to the federal charter.”
NY opens dialogue on coordinated cyber security rules
Nov. 9, 2015 — Potential new regulations aimed at increasing cyber security defenses within the financial sector are under consideration by the New York State Department of Financial Services (NYDFS).
Mobile command center provides foreclosure prevention assistance to homeowners
Aug. 10, 2015 — Albany, N.Y. — Gov. Andrew M. Cuomo today announced that he is deploying trained personnel from the Department of Financial Services to Watertown and Oswego to offer foreclosure prevention assistance to financially struggling homeowners.
New York Credit Unions Assist Thousands with Tax Preparation
April 22, 2015 –Albany, N.Y. – New York’s credit unions assisted thousands of individuals and families with free tax preparation services last year, according to the New York Credit Union Association’s 2014 MORE Report.
Field of Membership Expansion Bill Signed into Law in New York
December 18, 2014 –Albany, N.Y. – State-chartered credit unions in New York will now be allowed to apply for a membership field that includes community, association and occupation-based groups at the same time, thanks to a bill that N.Y. Gov. Andrew Cuomo signed into law Wednesday.
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