New York Bill Relaxes Membership Rules for State-Chartered CUs
It’s now up to New York Gov. Andrew Cuomo to ink a new law that expands field of membership rules for credit unions chartered in the Empire State.
Senate Bill 2089, which passed the New York State Senate on June 20 and State Assembly on June 21, would allow such credit unions to provide membership to select employee groups, associations and to communities.
Without the bill, the credit unions are limited to choosing one type of charter, limiting them to only SEGs, associations or communities.
The bill also includes a provision that enables New York’s state-chartered credit unions to increase investments in their communities and programs aimed at community reinvestment, including projects that involve housing projects, slum clearance corporations, small business investment corporations and urban development corporations.
The Credit Union Association of New York advocated strongly for the bill, which was sponsored by Sen. Joseph Griffo (R-Utica) and Democrat Assemblywoman Annette Robinson (D-Brooklyn).
“We salute the NYS Legislature for passing this legislation, which enhances the state charter and opens the door for more New Yorkers to have a not-for-profit, cooperative financial services option,” William J. Mellin, CUANY president/CEO, said in a statement. “Our Association will continue to advocate for legislation that benefits New Yorkers and promotes parity among state and federal charters,” Mellin said.