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Senate Bill S2911

2013-2014 Legislative Session

Prohibits employer withdrawal from direct deposit account without notice to and permission from account owner

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Archive: Last Bill Status - In Senate Committee Banks Committee

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2013-S2911 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add ยง8-a, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S2166
2011-2012: S1493

2013-S2911 (ACTIVE) - Summary

Prohibits employer withdrawal from direct deposit account without notice to and permission from account owner, who must be given 15 days notice of withdrawal and must give depository bank written permission therefor; provides that this section shall not be construed to supersede any such withdrawal otherwise authorized by law or court order.

2013-S2911 (ACTIVE) - Sponsor Memo

2013-S2911 (ACTIVE) - Bill Text download pdf 

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

                                  2911

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 25, 2013
                               ___________

Introduced  by  Sen.  PARKER -- 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 certain withdrawals from
  accounts to which direct deposits have been authorized

  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 8-a to
read as follows:
  S 8-A. DIRECT DEPOSIT AGREEMENTS WITH  EMPLOYERS.  NO  DIRECT  DEPOSIT
AGREEMENT  WITH  AN  EMPLOYER  SHALL  AUTHORIZE ANY WITHDRAWALS FROM THE
ACCOUNT INTO WHICH SUCH DIRECT DEPOSITS ARE TO BE MADE BY  ANYONE  OTHER
THAN  THE ACCOUNT OWNER, UNLESS AT LEAST FIFTEEN DAYS' WRITTEN NOTICE IS
GIVEN BY THE DEPOSITORY BANKING ORGANIZATION TO SUCH OWNER.  SUCH NOTICE
SHALL BE SENT BY REGULAR MAIL TO THE ACCOUNT OWNER'S LAST KNOWN  ADDRESS
ON  RECORD.    THIS SECTION SHALL NOT BE CONSTRUED TO SUPERSEDE ANY SUCH
WITHDRAWAL OTHERWISE AUTHORIZED BY LAW OR ORDER OF A COURT OF  COMPETENT
JURISDICTION.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06742-01-3

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