|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to judiciary|
|Jan 09, 2013||referred to judiciary|
senate Bill S248
Archive: Last Bill Status - In Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S248 - Details
S248 - Summary
Requires brokers who receive monies in a fiduciary capacity to deposit such monies in an interest on broker (IOBA) account.
S248 - Sponsor Memo
BILL NUMBER:S248 TITLE OF BILL: An act to amend the real property law and the state finance law, in relation to brokers fiduciary funds PURPOSE OR GENERAL IDEA OF BILL: To direct real estate brokers to hold escrowed monies in certain specialized accounts. SUMMARY OF SPECIFIC PROVISIONS: This bill would direct real estate brokers to hold all escrowed monies held for the benefits of others in specialized Interest On Brokers Accounts (IOBA), patterned after Interest On Lawyers' Accounts (IOLA). All interest earned from IOBA accounts would flow to the benefit of civil legal service funding, JUSTIFICATION: In 1993 Judiciary Law Sec. 497 was enacted, which provided for attorney's escrow monies to be held in specialized IOLA accounts. The interest proceeds from these accounts were then used to fund much needed civil legal services. It is submitted that the extension of these accounts for the benefit of civil legal services would be a sensible and logical step which would likewise benefits
S248 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 248 2013-2014 Regular Sessions I N S E N A T E (PREFILED) January 9, 2013 ___________ Introduced by Sen. SAMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law and the state finance law, in relation to brokers fiduciary funds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property law is amended by adding a new section 443-b to read as follows: S 443-B. BROKERS FIDUCIARY FUNDS; INTEREST-BEARING ACCOUNTS. 1. AS USED IN THIS SECTION: (A) "INTEREST ON BROKER ACCOUNT" OR "IOBA" MEANS AN UNSEGREGATED INTEREST-BEARING DEPOSIT ACCOUNT WITH A BANKING INSTITUTION FOR THE DEPOSIT BY A BROKER OF QUALIFIED FUNDS. (B) "QUALIFIED FUNDS" MEANS MONEYS RECEIVED BY A BROKER IN A FIDUCIARY CAPACITY FROM A CLIENT OR BENEFICIAL OWNER AND WHICH ARE NOT PLACED IN AN INTEREST-BEARING ACCOUNT AT THE REQUEST OF AND FOR THE BENEFIT OF THE CLIENT OR BENEFICIAL OWNER. (C) "FUNDS RECEIVED IN A FIDUCIARY CAPACITY" MEANS FUNDS RECEIVED BY A BROKER FROM A CLIENT OR BENEFICIAL OWNER IN THE COURSE OF BUSINESS, INCLUDING BUT NOT LIMITED TO, FUNDS RECEIVED IN AN ESCROW CAPACITY. (D) "BANKING INSTITUTION" MEANS A BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION OR FOREIGN BANKING CORPO- RATION WHETHER INCORPORATED, CHARTERED, ORGANIZED OR LICENSED UNDER THE LAWS OF THIS STATE OR THE UNITED STATES, PROVIDED THAT SUCH BANKING INSTITUTION CONDUCTS ITS PRINCIPAL BANKING BUSINESS IN THIS STATE. 2. (A) UNLESS A CLIENT OR BENEFICIAL OWNER SPECIFICALLY REQUESTS OTHERWISE, OR A CONTRACT PROVIDES OTHERWISE, A BROKER WHO RECEIVES MONIES IN A FIDUCIARY CAPACITY SHALL DEPOSIT SUCH MONIES IN AN IOBA IN A BANKING INSTITUTION OF HIS OR HER CHOICE OFFERING SUCH ACCOUNTS. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02245-01-3
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