Assembly Bill A2304

2009-2010 Legislative Session

Alters provisions with respect to the right of set off by banks with respect to social security or supplemental security income deposits

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2009-A2304 - Details

Current Committee:
Assembly Codes
Law Section:
Banking Law
Laws Affected:
Amd §9-g, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A3014

2009-A2304 - Summary

Provides that a banking institution may claim the right of set off against a deposit account if notice of the set off together with the reasons for the set off are mailed to the depositor prior to such action; provides that failure to provide such notice shall result in the forfeiture of the right of set off against the depositor.

2009-A2304 - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2304

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. SCHROEDER, J. RIVERA, COOK -- Multi-Sponsored by
  -- M. of A. JEFFRIES -- read once and referred  to  the  Committee  on
  Banks

AN ACT to amend the banking law, in relation to the right of set off

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 1, 2 and 3 of section 9-g of the banking  law,
as  added  by  chapter  10  of  the laws of 1980, are amended to read as
follows:
  1. No banking institution shall assert, claim or exercise any right of
set off against any  deposit  account  into  which  social  security  or
supplemental  security  income  payments  are  deposited  pursuant to an
agreement  with  such  banking  institution  which  provides  that  such
payments be deposited directly into such deposit account without presen-
tation  to  the depositor at the time of deposit.  IF SOCIAL SECURITY OR
SUPPLEMENTAL SECURITY INCOME PAYMENTS ARE DEPOSITED BY AN ACCOUNT  HOLD-
ER,  THE  BANKING  INSTITUTION SHALL MAIL NOTICE OF THE SET OFF TOGETHER
WITH THE REASONS FOR THE SET OFF TO THE DEPOSITOR WITHIN THIRTY DAYS  OF
SUCH ACTION.
  2.    No banking institution shall assert, claim or exercise any right
of set off against any other deposit account held by such banking insti-
tution unless, prior to [or on the same business day  of]  such  action,
notice  of  the  set  off  together with the reasons for the set off are
mailed to the depositor.
  3.  Failure to provide the notice required by this section shall  [not
be  deemed to affect the validity] RESULT IN THE FORFEITURE of the right
of set off WHICH WOULD HAVE RESULTED HAD PROPER NOTICE BEEN PROVIDED.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03278-01-9

2009-A2304A (ACTIVE) - Details

Current Committee:
Assembly Codes
Law Section:
Banking Law
Laws Affected:
Amd §9-g, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A3014

2009-A2304A (ACTIVE) - Summary

Provides that a banking institution may claim the right of set off against a deposit account if notice of the set off together with the reasons for the set off are mailed to the depositor prior to such action; provides that failure to provide such notice shall result in the forfeiture of the right of set off against the depositor.

2009-A2304A (ACTIVE) - Sponsor Memo

2009-A2304A (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2304--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. SCHROEDER, J. RIVERA, COOK -- Multi-Sponsored by
  -- M. of A.  JEFFRIES -- read once and referred to  the  Committee  on
  Banks  --  recommitted  to  the  Committee on Banks in accordance with
  Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the banking law, in relation to the right of set off

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivisions 2 and 3 of section 9-g of the banking law, as
added by chapter 10 of the laws of 1980, are amended to read as follows:
  2.  No banking institution shall assert, claim or exercise  any  right
of set off against any other deposit account held by such banking insti-
tution  unless,  prior  to [or on the same business day of] such action,
notice of the set off together with the reasons  for  the  set  off  are
mailed to the depositor.
  3.   Failure to provide the notice required by this section shall [not
be deemed to affect the validity] RESULT IN THE FORFEITURE of the  right
of set off WHICH WOULD HAVE RESULTED HAD PROPER NOTICE BEEN PROVIDED.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03278-02-0

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