Bethpage and the Budget, Part II
One of the terms you may be hearing more about in the coming days is an open charter. An open charter allows a credit union to serve members without Field of Membership restrictions. Federal, natural person credit unions have never had open charter authority. In contrast, until 1929, New York State Law authorized such charters. This charter authority was eliminated but existing credit union authority was grandfathered. Montauk was incorporated with an open charter in 1922.
According to an article, as part of its agreement to acquire Montauk, Bethpage also acquired its open charter, which means that the community chartered credit union is now authorized to service members without geographic restrictions. However, the article also said that Bethpage has no immediate plans to expand beyond the New York City area.
Here is an opinion letter from the Banking Department, which provides some background on the open charter’s history and application.
If you’re interested in finding out more. . .
We are understandably already getting questions about New York’s paid family leave benefits law, enacted in this year’s State budget. On the off chance that some of you want to take a look yourselves, but don’t enjoy plowing through New York State’s budget bills, you can find pertinent information in Part SS of S.6406-C. This is one of the so-called Article VII bills, which provide programmatic language to support budget appropriations.