N.Y. Banking Law Section 451-A
Qualifications for membership


1.

Subject to approval of the superintendent, the membership of a credit union shall consist of persons within the credit union’s field of membership who have been duly admitted members. Subject to the approval of the superintendent, a credit union’s field of membership may include one or more of the following categories:

(a)

Persons:

(1)

within the same occupation or from multiple groups each representing a different occupation;

(2)

within the same association or from multiple groups each representing a different association;

(3)

who reside, work, worship or attend school within a well-defined identifiable neighborhood, community or rural district and who, in the judgment of the superintendent, have such a community of interest as will ensure proper administration. For purposes of this section a “well-defined identifiable neighborhood, community or rural district” may consist of one or more adjacent precincts, districts, cities or counties; or

(4)

within a combination of these three categories described in this subdivision; or

(b)

Organizations located within a well-defined identifiable neighborhood, community or rural district, as determined in accordance with subparagraph three of paragraph (a) of this subdivision and which, in the judgment of the superintendent, have such a community of interest as will ensure proper administration; or

(c)

Family members of such persons described in paragraph (a) of this subdivision. For the purposes of this paragraph, “family member” means a person related by blood, marriage or living in the same household with a person within the field of membership and their lineal ancestors and descendants including persons so related by adoption, siblings, stepparents, stepchildren and stepsiblings; and “household” means persons living in the same residence and maintaining a single economic unit; or

(d)

Any employee of the credit union; or

(e)

Any member who leaves the field of membership and who has not withdrawn or been expelled may retain membership; or

(f)

Any incorporated or unincorporated organization composed principally of persons eligible to membership in the credit union and that organization’s employees.

2.

Any person who is eligible for membership by reason of the fact that he or she is an employee of a common employer or of a credit union shall not become ineligible, after the termination of such employment, as long as he or she receives a pension or annuity from, or under, a plan or other arrangement established by such common employer or credit union.

3.

Subject to approval of the superintendent, a credit union may extend membership to persons and organizations in an underserved local community, neighborhood or rural district where such area is considered an “investment area” as defined in the federal Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703(16)).

4.

In considering an application pursuant to subdivision one of this section, the superintendent shall consider the credit union’s record and history of serving underserved areas, as well as low and moderate-income individuals within the communities it currently services, if any, and its commitments to serve underserved areas, as well as low and moderate-income individuals in the communities to be served. Furthermore, in considering such application, the superintendent may impose such limitation, such as geographical limitations, as the superintendent determines to be appropriate in his or her sole discretion.

Source: Section 451-A — Qualifications for membership, https://www.­nysenate.­gov/legislation/laws/BNK/451-A (updated Aug. 21, 2015; accessed Mar. 23, 2024).

450
Incorporation
450–A
Designation of low income credit union
450–B
Designation of student branches
451
Proposed bylaws
451–A
Qualifications for membership
452
When corporate existence begins
453
Corporate credit unions
454
General powers
455
Trust powers
456
Limitations upon powers
457
Capital
458–A
Maintenance of reserves
459
Allowance for loan loss
460
Dividends to shareholders
461
Change of location
462
Foreign credit unions
463
Exemptions and individual liability of shareholders
464
Manner of withdrawal
465
Withdrawal of shares after voting to liquidate
466
Meetings of shareholders
467
Qualifications and disqualifications of directors and committee members
468
Oaths of directors, officers and members of committees
469
Vacancies
470
Powers and duties of directors
471
Duty of directors and officers
472
Special duties of directors
473
Loan officers, credit committee
474
Loan reports to directors
475
Supervisory committee
476
Officers
477
Retirement and insurance benefits for officers and employees
478
Amendment of bylaws
479
Credit union not liable for taxation
480
Fiscal year
481
Communications from department of financial services must be submitted to directors and supervisory committee, and noted in the minutes
482
Reports to superintendent
483
Penalty for loans to non-members
484
Penalty for use of term “credit union”
485
Entries in books
486
Conversion of a federal credit union into a state credit union
486–A
Retention of special additional mortgage recording tax exemption for converted federal credit unions
487
Conversion of a credit union into a federal credit union
487–A
Conversion of a credit union into a mutual savings bank

Accessed:
Mar. 23, 2024

Last modified:
Aug. 21, 2015

§ 451-A’s source at nysenate​.gov

Link Style