S T A T E O F N E W Y O R K
________________________________________________________________________
8217
2017-2018 Regular Sessions
I N A S S E M B L Y
June 2, 2017
___________
Introduced by M. of A. LUPARDO -- read once and referred to the Commit-
tee on Banks
AN ACT to amend the banking law, in relation to joint deposit and
convenience accounts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (c) of section 675 of the banking law is relet-
tered subdivision (d) and a new subdivision (c) is added to read as
follows:
(C) UPON THE ESTABLISHMENT AND OPENING OF A JOINT DEPOSIT OF CASH,
SECURITIES, OR OTHER PROPERTY AS DEFINED IN SUBDIVISION (A) OF THIS
SECTION, A BANKING ORGANIZATION, A FOREIGN BANK CORPORATION TRANSACTING
BUSINESS IN THIS STATE, A SAVINGS AND LOAN ASSOCIATION OR A CREDIT UNION
TRANSACTING BUSINESS IN THIS STATE SHALL OFFER AN ACCOUNT FOR CONVEN-
IENCE AS DEFINED BY SECTION SIX HUNDRED SEVENTY-EIGHT OF THIS ARTICLE TO
THE DEPOSITOR.
§ 2. Section 678 of the banking law, as added by chapter 436 of the
laws of 1990, subdivision 2 as further amended by section 104 of part A
of chapter 62 of the laws of 2011, is amended to read as follows:
§ 678. Accounts for convenience only. 1. UPON THE ESTABLISHMENT AND
OPENING OF A JOINT DEPOSIT OF CASH, SECURITIES, OR OTHER PROPERTY AS
DEFINED IN SUBDIVISION (A) OF SECTION SIX HUNDRED SEVENTY-FIVE OF THIS
ARTICLE, A BANKING ORGANIZATION, A FOREIGN BANK CORPORATION TRANSACTING
BUSINESS IN THIS STATE, A SAVINGS AND LOAN ASSOCIATION OR A CREDIT UNION
TRANSACTING BUSINESS IN THIS STATE SHALL OFFER AN ACCOUNT FOR CONVEN-
IENCE AS DEFINED IN THIS SECTION.
2. When a deposit of cash, securities or other property has been made,
or shares shall be issued in or with any banking organization or foreign
banking corporation transacting business in this state, in an account
established after the effective date of this section, in the name of a
depositor and another person and in form to be paid or delivered to
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10825-02-7
A. 8217 2
either "for the convenience" of the depositor, the making of such depos-
it or the issuance of such shares shall not affect the title to such
deposit or shares and the depositor shall not be considered to have made
a gift of one-half the deposit or of any additions or accruals thereon
to the other person, and, on the death of the depositor, the other
person shall have no right of survivorship in the account. If an addi-
tion is made to such an account by anyone other than the depositor, such
an addition and accruals thereon shall be considered to have been made
by the depositor. Such deposit or shares, together with all additions
and accruals thereon, may be paid or delivered to the depositor or the
other person, and such payment or delivery and the receipt or acquit-
tance of the one to whom such payment or delivery is made, shall be a
valid and sufficient release and discharge to the banking organization
or foreign banking corporation prior to the receipt by the banking
organization or foreign banking corporation of notice in writing signed
by the depositor not to pay or deliver such deposit or shares and the
additions and accruals thereon in accordance with the terms thereof, and
after receipt of any such notice, the banking organization or foreign
banking corporation may require the receipt or acquittance of the depos-
itor for any further payments or delivery. If the depositor is dead,
such payment or delivery to the other person shall be a valid and suffi-
cient release to the banking organization or foreign banking corporation
prior to the receipt by the banking organization or foreign banking
corporation of written notice of the depositor's death. A banking organ-
ization or foreign banking corporation which, upon the death of the
depositor and prior to service upon it of a restraining order, injunc-
tion or other appropriate process from a court of competent jurisdiction
prohibiting payment, makes payment to the executor, administrator or
other qualified representative of the deceased depositor's estate,
shall, to the extent of such payment, be released from liability to any
person claiming a right to the funds and the receipt or acquittance of
the executor, administrator or qualified representative to whom payment
is made shall be a valid and sufficient release and discharge of the
financial institution.
[2.] 3. The superintendent of financial services shall promulgate and
may from time to time amend rules and regulations which require that a
depositor who requests the establishment of an account in the name of
the depositor and another person "for the convenience" of the depositor
be informed of the terms and conditions of the account described in
subdivision [one] TWO of this section, including the relationship and
consequences between the parties in such an account, the difference
between such an account and a joint account established under section
six hundred seventy-five of this article, and the responsibilities of
the institution with which such an account is established. This subdivi-
sion or any rule or regulation thereunder shall not be deemed or
construed as increasing or diminishing the rights or liability of any
person, or other entity.
§ 3. This act shall take effect immediately.