§ 453 — Corporate credit unions

New York § 453

• Jurisdiction: New York
• Law BNK: Banking
• Art. 11: Credit Unions

Text

§ 453. Corporate credit unions. 1. A corporate credit union may be\nincorporated under this section and shall be subject to all provisions\nof this article not inconsistent with this section.\n 2. Membership in a corporate credit union shall be institutional and\nshall be limited to: credit unions organized under this article, the\nFederal Credit Union Act or any other credit union act, and\norganizations or associations owned by or composed of credit unions and\ncorporations and associations which primarily service credit unions.\n 3. The board of directors of each credit union, organization,\nassociation or corporation becoming a member of a corporate credit union\nshall designate one person to be a voting representative in the\ncorporate credit union. Such person shall be eligible to hold office in\nthe corporate credit union as if such person were a member of the\ncorporate credit union.\n 4. A corporate credit union is a credit union whose members consist\nprimarily of other credit unions and whose purposes are to:\n (a) accumulate and prudently manage the liquidity of its member credit\nunions through interlending and investment services;\n (b) act as an intermediary for credit union funds between members and\nother corporate credit unions;\n (c) obtain liquid funds from other credit union organizations,\nfinancial intermediaries and other sources;\n (d) foster and promote in cooperation with other state, regional and\nnational corporate credit unions and credit union organizations or\nassociations the economic security, growth and development of member\ncredit unions; and\n (e) perform such other financial services of benefit to its members\nwhich are authorized by the superintendent.\n 5. A corporate credit union shall enjoy the powers and privileges of\nany other credit union incorporated under this chapter in addition to\nthose powers enumerated in this article, notwithstanding any limitation\nor restrictions found elsewhere in this article. The superintendent of\nfinancial services may promulgate such regulations concerning the\nestablishment and operations of corporate credit unions as in its\ndiscretion are necessary and proper. Subject to such regulations, a\ncorporate credit union may:\n (a) accept shares or deposits in any form from its members, other\nstate, regional or national corporate credit unions, and credit union\norganizations or associations;\n (b) make loans to its members and other credit unions and other state,\nregional, or national corporate credit unions, organizations and\nassociations of credit unions;\n (c) establish lines of credit for members and participate with other\ncredit unions in making loans to its members under the terms and\nconditions determined by the board of directors;\n (d) invest in the shares of or make deposits in credit unions;\n (e) buy and sell any form of marketable debt obligations of domestic\nor foreign corporations or of federal, state or local government units;\n (f) borrow money, accept demand deposits and issue notes or\ndebentures;\n (g) acquire or sell the assets and assume the liabilities of a member;\nand\n (h) enter into agreements with credit unions to discount or purchase\nloans made pursuant to government-guaranteed loan programs, real estate\nloans made by members or any obligations of the United States or any\nagency thereof held by members.\n 6. A corporate credit union shall be exempt from the reserve\nrequirements of section four hundred fifty-eight-a of this article, but\nshall be required to accumulate and maintain reserves in accordance with\nthe requirements of the National Credit Union Administration.\n