N.Y. Banking Law § 450-a: Designation of low income credit union

§ 450-a. Designation of low income credit union. 1. A credit union

organized under this article may be designated as a low income credit

union as defined in subdivision five of this section.

2. A credit union, including a credit union in formation, may make

written application to the superintendent to be designated as a low

income credit union. If the superintendent shall find, after

investigation, that such credit union meets the definition of a low

income credit union, as set forth in this section, he or she shall

approve such designation.

3. Notwithstanding any other provision of this article, a low income

credit union may issue shares, share drafts and share certificates to

nonmembers who or which may be natural persons, corporations,

partnerships or other legal entities.

4. Except as provided in this section, all provisions of this chapter

shall be applicable to low income credit unions.

5. As used in this section, the term "low income credit union" shall

mean a credit union in which a majority of the members: (a) make less

than eighty percent of the average for all wage earners as established

by the bureau of labor statistics of the United States department of

labor or have annual household incomes that fall at or below eighty

percent of the median household income for the nation as established by

the United States census bureau; or (b) are residents of a public

housing project who qualify for such residency because of low income; or

(c) qualify to receive benefits from any program designed to assist the

economically disadvantaged. The superintendent of financial services may

promulgate regulations appropriate to the formation and operation of low

income credit unions.

6. A credit union's designation as a low income credit union may be

removed by the superintendent if he or she shall find, after

investigation, that such credit union no longer meets the definition of

a low income credit union as set forth in this section. Upon such a loss

of designation, such credit union shall no longer be authorized to

exercise the powers set forth in this section but shall remain subject

to all of the other provisions of this chapter applicable to credit

unions generally.