The New York Credit Union Association on Friday issued an urgent call to action on legislation that would grant credit unions access to the Banking Development District Program. The move would greatly benefit and improve access to basic banking services for many unbanked and underserved communities throughout the state. The Association strongly supports the legislation, A.3320 (Zebrowski)/S.727-A (Montgomery), and is encouraging all New York credit union advocates to contact their state lawmakers and urge them to support the legislation.
To submit an email to state lawmakers, visit the Association’s Action Center (registration required).
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. Banks and trust companies have continually declined to participate in the program, yet credit unions remain unable to participate.
As previously reported, the Assembly Banks Committee passed the legislation last week, and the legislation is now headed to the Ways and Means Committee.
The state Senate Banks Committee also passed legislation, S.727 in February, which includes credit unions within the definition of a bank, trust company or national bank for the purpose of a BDD Program.
“The Association strongly supports A.3320 (Zebrowski)/S.727-A (Montgomery), and is encouraging all New York credit union leaders to contact their state lawmakers and urge them to support the legislation,” Association President/CEO William J. Mellin wrote in an email to member credit unions on Friday. “A strong, united effort by the New York credit union movement could be the key to passing this critical legislation.”