| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 24, 2010 |
referred to banks |
Senate Bill S7921
2009-2010 Legislative Session
Sponsored By
(R, IP) Senate District
Archive: Last Bill Status - In Senate Committee Banks Committee
Actions
2009-S7921 (ACTIVE) - Details
- Current Committee:
- Senate Banks
- Law Section:
- Banking Law
- Laws Affected:
- Rpld & add ยง9-t, Bank L
2009-S7921 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7921
TITLE OF BILL :
An act to amend the banking law, in relation to prohibiting the use of
unsolicited mail-loan checks; and to repeal section 9-t of such law
relating thereto
PURPOSE :
To end the unsolicited practice of inadvertent third party
subscriptions when a check is endorsed.
SUMMARY OF PROVISIONS :
Section 9-t of the banking law is repealed and a new section 9-t is
added, causing no lending institution the right to issue an
unsolicited mail-loan check.
EXISTING LAW :
Repeal former section 9-t and add new section 9-t.
JUSTIFICATION :
To make it illegal for banks to solicit via a "monetary instrument"
(ie. checks) on a third party's behalf. Recently, a constituent was
mailed a check by his bank. The check was made out in the amount of
$10.00. Upon endorsing the check, this constituent, without realizing
or meaning to do so, automatically signed himself up for a service
2009-S7921 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
7921
I N S E N A T E
May 24, 2010
___________
Introduced by Sen. ALESI -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to prohibiting the use of
unsolicited mail-loan checks; and to repeal section 9-t of such law
relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 9-t of the banking law is REPEALED and a new
section 9-t is added to read as follows:
S 9-T. UNSOLICITED MAIL-LOAN CHECKS. 1. FOR PURPOSES OF THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "LENDING INSTITUTION" SHALL MEAN A LICENSED LENDER OR A STATE OR
FEDERALLY CHARTERED BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN
ASSOCIATION OR CREDIT UNION.
(B) "MAIL-LOAN CHECK" SHALL MEAN A CHECK, MADE OUT TO AND MAILED TO A
PERSON BY A LENDING INSTITUTION, WHICH, WHEN CASHED OR DEPOSITED BY SUCH
PERSON, OBLIGATES SUCH PERSON TO REPAY TO SUCH LENDING INSTITUTION THE
AMOUNT OF THE PROCEEDS OF SUCH CHECK ACCORDING TO TERMS MAILED TO SUCH
RECIPIENT WITH SUCH CHECK.
2. NO LENDING INSTITUTION SHALL ISSUE AN UNSOLICITED MAIL-LOAN CHECK.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16945-01-0
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