| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 31, 2012 |
print number 651a |
| May 31, 2012 |
amend (t) and recommit to banks |
| Jan 04, 2012 |
referred to banks |
| Jan 05, 2011 |
referred to banks |
Senate Bill S651A
2011-2012 Legislative Session
Sponsored By
(D, WF) Senate District
Archive: Last Bill Status - In Senate Committee Banks Committee
Actions
Bill Amendments
co-Sponsors
(D, WF) Senate District
(D, WF) Senate District
(D, WF) 28th Senate District
(D, WF) 21st Senate District
2011-S651 - Details
- See Assembly Version of this Bill:
- A2850
- Current Committee:
- Senate Banks
- Law Section:
- Banking Law
- Laws Affected:
- Amd §9-t, Bank L
- Versions Introduced in Other Legislative Sessions:
-
2009-2010:
S64, A2604
2013-2014: S703, A2792
2015-2016: S4028, A1645
2017-2018: A1126
2019-2020: A3243
2021-2022: A1693
2011-S651 - 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-S651 - Sponsor Memo
BILL NUMBER:S651
TITLE OF BILL:
An act
to amend the banking
law, in relation to prohibiting banks from issuing checks whose
endorsement constitutes acceptance of an unsolicited loan
PURPOSE OR GENERAL IDEA OF BILL:
Prohibits banking organizations from issuing checks for unsolicited
loans.
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends the banking law by adding section 9-v, which
prohibits banking organizations from issuing checks whose endorsement
constitutes acceptance of an unsolicited loan.
JUSTIFICATION:
The practice of mailing unsolicited loan checks to consumers can prove
confusing to the consumer with respect to the obligation flowing from
his or her endorsement. Additionally, an unsolicited loan check
received by mail may be cashed by an unknown payee obligating the
payee to repay the loan. This bill would negate the problems noted
above.
PRIOR LEGISLATIVE HISTORY:
2011-S651 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
651
2011-2012 Regular Sessions
I N S E N A T E
(PREFILED)
January 5, 2011
___________
Introduced by Sen. SAMPSON -- 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 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
(D, WF) Senate District
(D, WF) Senate District
(D, WF) 28th Senate District
(D, WF) 21st Senate District
2011-S651A (ACTIVE) - Details
- See Assembly Version of this Bill:
- A2850
- Current Committee:
- Senate Banks
- Law Section:
- Banking Law
- Laws Affected:
- Amd §9-t, Bank L
- Versions Introduced in Other Legislative Sessions:
-
2009-2010:
S64, A2604
2013-2014: S703, A2792
2015-2016: S4028, A1645
2017-2018: A1126
2019-2020: A3243
2021-2022: A1693
2011-S651A (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-S651A (ACTIVE) - Sponsor Memo
BILL NUMBER:S651A
TITLE OF BILL:
An act to amend the banking law, in relation to mail-loan checks
PURPOSE OR GENERAL IDEA OF BILL:
Prohibits banking organizations from issuing mail-loan checks without
request or application, in order to protect consumers from potentially
unsafe banking products.
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends subdivisions 2 and 3 of section 9-t of the banking
law and adds a new subdivision 4 to section 9-t of the banking law.
JUSTIFICATION:
The practice of mailing unsolicited loan checks to consumers can prove
confusing to the consumer with respect to the obligation flowing from
his or her endorsement. Additionally, an unsolicited loan check
received by mail may be cashed by an unknown payee obligating the
payee to repay the loan. This bill would negate the problems noted
above.
PRIOR LEGISLATIVE HISTORY:
S.7493 of 2008 04/08/08 REFERRED TO BANKS
FISCAL IMPLICATIONS:
2011-S651A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
651--A
2011-2012 Regular Sessions
I N S E N A T E
(PREFILED)
January 5, 2011
___________
Introduced by Sens. SAMPSON, BRESLIN, HASSELL-THOMPSON, KRUEGER, PARKER
-- read twice and ordered printed, and when printed to be committed to
the Committee on Banks -- recommitted to the Committee on Banks in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02778-03-2
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