NY Clarifies Station Requirements For State Charters

June 29, 2017 at 10:21 am Leave a comment

The NYS Department of Financial Services clarified in guidance issued yesterday that state chartered credit unions can operate temporary facilities, such as mobile service units, tents, booths, tables without first applying for permission from the DFS. As someone who has tried to advise credit unions on this issue it is a welcome clarification.

Section 461 of New York’s banking law requires state charters to apply for permission anytime they change location or open station within the state.  The process is cumbersome and must be accompanied by a board resolution. Yesterday’s guidance explains that this requirement does not apply to a state charter that simply wants to set up a temporary location to   sign up new members, receive loan and credit card applications, and  advise members and potential members about the products and services offered by the credit union.

Credit unions must, however, provide advance notice of their plans to the DFS and provide a schedule showing upcoming times and locations where the temporary facility will operate, the number and title of qualified individuals who would be involved in offering such services, and any further information the Department may require. Furthermore, the facilities cannot engage in most  banking activities. For example, they cannot be used to accept loan payments, conduct wire transfers, accept deposits, make withdrawals, issue ATM debit or credit cards, or accept any payments.

 

CFPB Finalizes Technical Amendments

The CFPB has issued a final rule making what it describes as “several non-substantive corrections” to 2016 amendments to the servicing regulations. Yours truly has not read the regulations but I wanted to get the word out.

Besides, it reminds me of one of the lessons I learned from my old boss at the Legislature who taught me everything I know about reading and analyzing legislation. He never allowed me to describe a change as technical because (1) There is really no such thing as a technical amendment – every change is technical and (2) All too often “technical amendment” is used to describe changes that no one really understands or wants to explain. In other words,  always read the regulation and understand it no matter how insignificant it may seem to the drafter. In the immortal words of Henry Kissinger even paranoids have real  enemies

Entry filed under: Compliance, New York State. Tags: , .

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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.

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