senate Bill S4055

2015-2016 Legislative Session

Requires brokers who receive monies in a fiduciary capacity to deposit such monies in an interest on broker account

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 26, 2015 referred to judiciary

S4055 (ACTIVE) - Details

Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §443-b, RP L; amd §§97-v & 98, St Fin L
Versions Introduced in Other Legislative Sessions:
2009-2010: S2974
2011-2012: S1715
2013-2014: S248

S4055 (ACTIVE) - Summary

Requires brokers who receive monies in a fiduciary capacity to deposit such monies in an interest on broker (IOBA) account.

S4055 (ACTIVE) - Sponsor Memo

S4055 (ACTIVE) - Bill Text download pdf

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

                                  4055

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 26, 2015
                               ___________

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.
                                                           LBD09117-02-5

S. 4055                             2

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