BILL NUMBER: S3615
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the banking law, in relation to minority depository
institutions which apply to establish a home or branch office in an
unbanked or underbanked community
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to allow minority depository institutions
within established Banking Development Districts located in unbanked and
underbanked communities to accept deposits from the State.
 
SUMMARY OF PROVISIONS:
Section one: Authorizes minority depository institutions who establish
home and branch offices in a community determined to be underbanked or
unbanked by DFS to receive deposits from the State Comptroller and
Commissioner of Taxation and Finance.
Section two: This act shall take effect immediately.
 
JUSTIFICATION:
The Banking Development District (BDD) Program was created in 1997 in
order to encourage municipalities to offer incentives to banking organ-
izations who established branches in underbanked or unbanked areas.
Though the BDD has been successful, there is still much progress to be
made when it comes to investing in underbanked or unbanked communities
across the state.
Minority depository institutions are defined by federal law as being any
depository institution where 51 percent or more of the stock is owned by
one or more "socially and economically disadvantaged individuals".
Supplemental federal guidelines define "minority depository institution"
as any federally insured depository institution where 51 percent or more
of the voting stock is owned by minority individuals.
Authorizing minority depository institutions within Banking Development
Districts to accept deposits from the State will allow for greater
investment by these minority banks into their local communities.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S3615: 96-d banking law, 96-d(5) banking law