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Assembly Bill A2850A

2011-2012 Legislative Session

Prohibits banking organizations from issuing mail-loan checks without request or application therefor

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Archive: Last Bill Status - On Floor Calendar

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Bill Amendments

co-Sponsors

2011-A2850 - Details

See Senate Version of this Bill:
S651
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: A2604, S64
2013-2014: A2792, S703
2015-2016: A1645, S4028
2017-2018: A1126
2019-2020: A3243
2021-2022: A1693

2011-A2850 - Summary

Prohibits banking organizations from issuing mail-loan checks without request or application therefor; provides that failure to destroy or return a mail-loan check does not constitute an acceptance thereof; provides that mail-loan checks shall have the transaction fee and interest rate included on the check.

2011-A2850 - Bill Text download pdf 

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

                                  2850

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2011
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee on Banks

AN ACT to amend the banking law, in relation to prohibiting  banks  from
  issuing checks whose endorsement constitutes acceptance of an unsolic-
  ited loan

  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  9-v  to
read as follows:
  S  9-V.  BANKING  ORGANIZATIONS  PROHIBITED  FROM ISSUING CHECKS WHOSE
ENDORSEMENT CONSTITUTES ACCEPTANCE OF AN UNSOLICITED LOAN.   NO  BANKING
ORGANIZATION  SHALL ISSUE A CHECK OR DRAFT TO ANY PERSON, FIRM, PARTNER-
SHIP, CORPORATION OR OTHER LEGAL ENTITY IF THE ENDORSEMENT OR DEPOSIT OF
SUCH CHECK OR DRAFT BY THE PAYEE WOULD CONSTITUTE THE  ACCEPTANCE  OF  A
LOAN  FROM  SUCH BANKING ORGANIZATION TO SUCH PAYEE WITHOUT SUCH PAYEE'S
HAVING SOLICITED SUCH LOAN.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment, and/or repeal of any rule or regulation  by
the superintendent of banks necessary for the implementation of this act
on  its  effective  date  are  authorized  and  directed  to be made and
completed on or before such effective date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02778-01-1

co-Sponsors

2011-A2850A (ACTIVE) - Details

See Senate Version of this Bill:
S651
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: A2604, S64
2013-2014: A2792, S703
2015-2016: A1645, S4028
2017-2018: A1126
2019-2020: A3243
2021-2022: A1693

2011-A2850A (ACTIVE) - Summary

Prohibits banking organizations from issuing mail-loan checks without request or application therefor; provides that failure to destroy or return a mail-loan check does not constitute an acceptance thereof; provides that mail-loan checks shall have the transaction fee and interest rate included on the check.

2011-A2850A (ACTIVE) - Bill Text download pdf 

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

                                 2850--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2011
                               ___________

Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
  tee 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 mail-loan checks

  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-t of the banking law, as
added by chapter 309 of the laws of 2002, are amended and a new subdivi-
sion 4 is added to read as follows:
  2. Any lending institution which issues mail-loan checks shall:
  (a) include on the face of each check issued to a non-customer a writ-
ten statement, in legible type reading "ONE FORM OF  VALID  PHOTOGRAPHIC
ID  NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
ing or accepting a mail-loan check for deposit may require more than one
form of identification;
  (b) make no reference on the outside  of  the  envelope  containing  a
mail-loan  check  that  indicates  that  a check is enclosed within such
envelope;
  (c) provide that all mail-loan checks shall be non-transferable; and
  (d) include THE TRANSACTION FEE AND INTEREST RATE  AND  an  expiration
date  of not more than six months on the mail-loan check, AS WELL AS ANY
ADDITIONAL INFORMATION THAT THE SUPERINTENDENT MAY REQUIRE.
  3. NO LENDING INSTITUTION SHALL ISSUE A  MAIL-LOAN  CHECK,  EXCEPT  IN
RESPONSE TO A REQUEST OR APPLICATION THEREFOR.
  4. FAILURE TO DESTROY OR RETURN A MAIL-LOAN CHECK SHALL NOT CONSTITUTE
ACCEPTANCE OF THE CHECK.
  5.  Any lending institution which mails a mail-loan check in violation
of the provisions of this section shall be liable for  a  civil  penalty
not to exceed five hundred dollars for each such violation.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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

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