Bethpage and the Budget, Part II

April 4, 2016 at 8:34 am 3 comments

 

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.

Entry filed under: General, New York State, Regulatory. Tags: , , .

Montauk Merged Into Bethpage Four Crucial Lessons…Kind Of

3 Comments Add your own

  • 1. Michael Murrock  |  April 4, 2016 at 9:45 am

    “Bankers” will be apopletic about the open charter… And I’m envious: We have branches that are nearby our community charter’s borders and we are constantly turning people down because they don’t qualify for membership. We may be their closest financial institution and their choice for financial services but since they don’t qualify we are forced to turn them away.

    Reply
  • 2. Anonymous  |  April 4, 2016 at 10:40 am

    I’m having difficulty opening your links

    Reply
  • 3. Mark Welshoff  |  April 5, 2016 at 9:39 am

    When I first read the article about the merger it gave me the impression that the charter would survive. Very interesting that the open charter was grandfathered. In other mergers of state charters the open charter ceased. If this was known a lot more CU’s would have been involved as potential merger candidates I am sure.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 446 other followers

Archives