S T A T E O F N E W Y O R K
________________________________________________________________________
169
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. JEFFRIES, PERRY, WRIGHT -- Multi-Sponsored by --
M. of A. ALFANO, BARRA, HYER-SPENCER, MAYERSOHN -- read once and
referred to the Committee on Banks
AN ACT to amend the banking law, in relation to day of deposit to day of
withdrawal accounts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The banking law is amended by adding a new section 98-b to
read as follows:
S 98-B. DAY OF DEPOSIT TO DAY OF WITHDRAWAL ACCOUNTS. NO BANK OR TRUST
COMPANY WHICH AGREES TO CREDIT INTEREST OR DIVIDENDS UPON AN ACCOUNT
FROM THE DATE ON WHICH A DEPOSIT IS MADE TO THE DATE THE DEPOSIT IS
WITHDRAWN MAY PROVIDE FOR THE FORFEITURE OF ANY PART OF SUCH INTEREST OR
DIVIDENDS IN THE EVENT SUCH ACCOUNT IS CLOSED PRIOR TO THE END OF THE
CALENDAR QUARTER OR OTHER REGULAR APPLICABLE INTEREST OR DIVIDEND PERI-
OD. ANY INTEREST OR DIVIDENDS EARNED SHALL BE DEEMED TO BE EARNED DAILY
AND SHALL BE MADE AVAILABLE TO THE DEPOSITOR AT THE TIME SUCH ACCOUNT IS
CLOSED.
S 2. Subdivision 3-b of section 245 of the banking law, as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
3-b. Subject to such limitations and restrictions as may be prescribed
by regulation of the banking board, a savings bank [may] SHALL credit
interest on deposits DAILY from the date on which the deposit is made to
the date the deposit is withdrawn.
S 3. Paragraph (bb) of subdivision 4 of section 378 of the banking
law, as amended by chapter 349 of the laws of 1986, is amended to read
as follows:
(bb) Subject to such limitations and restrictions as may be prescribed
by regulation of the banking board, special savings shares, upon which
dues shall be paid in such sums, at such times and for such purposes as
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00310-01-9
A. 169 2
the holder thereof may elect, and which shall provide that dividends
shall be credited from the date of actual receipt of such dues to the
date they are withdrawn or retired. Dividends on special savings shares
shall be credited DAILY and shall be made available no later than the
end of a regular dividend period, or at the time such special savings
shares are withdrawn or retired if in the opinion of a majority of the
board of directors it appears the savings and loan association will have
sufficient profit available at the end of such regular dividend period
to pay dividends and if the board of directors chooses payment of divi-
dends at withdrawal as an option to periodic payment of dividends. Any
savings and loan association which does not make dividends available
pursuant to the provisions of this paragraph shall promptly notify the
superintendent of banks of such decision. Withdrawals or retirements of
special savings shares during the last three business days of any regu-
lar dividend period or, in the event that any one of such last three
business days is a Saturday, withdrawals of such shares upon one of the
last four business days of any such period may receive dividends appor-
tioned for the full period.
S 4. Every bank or trust company, savings bank, or savings and loan
association offering an account or share pursuant to this act on or
after the effective date herein shall be required to offer such account
or share in conformity with the provisions of this act. Any such account
or share shall be deemed or construed as if the respective provisions of
this act were contained therein.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.