NY State Senate Bill 2017-S2712

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to banks
Jan 17, 2017	referred to banks

co-Sponsors

2017-S2712 (ACTIVE) - Details

See Assembly Version of this Bill:: A6253
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6216
2013-2014: S3240
2015-2016: S2868, A6794
2019-2020: S5001, A3229
2021-2022: S5460, A5212
2023-2024: S6849, A2149
2025-2026: S4090, A7696

2017-S2712 (ACTIVE) - Summary

Prohibits a bank or trust company from charging a service charge or requiring a minimum balance for attorney trust or IOLA accounts that are non-interest bearing in nature; defines attorney trust account.

2017-S2712 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2712

 TITLE OF BILL :  An act to amend the banking law, in relation to
attorney trust accounts

 PURPOSE SUMMARY OF PROVISIONS :

This bill would add new section 9-x to the Banking Law to provide that
no bank or trust company regulated by the State of New York shall
charge a service fee or require a minimum balance on an attorney trust
account, provided that such account is required by law and that no
more than fifteen debit or credit transactions per month are made in
connection with such account and further provided that such account is
non-interest bearing. This bill would also define 'attorney trust
account' as a special bank or checking account required by a rule of
court for deposit of funds belonging to legal clients or other persons
in the practice of law.

 JUSTIFICATION :

An attorney in possession of any asset or sum of money belonging to a
client is a fiduciary and must not commingle client funds with his or
her own funds or personal or business accounts. Furthermore, an
attorney must maintain in a bank or trust company within the State of
New York in his or her own name, or in the name of the firm of
attorneys of which he or she is a member, a special account

independent from his or her personal accounts.

In many areas of the state, banks require minimum deposits or service
fees for the maintenance of these accounts. Such requirements can be
financially burdensome to the small practicing attorney who handles
only a few cases which would require the collection and deposit of
clients' funds.

This bill would ameliorate this situation by providing that no bank or
trust company regulated by New York State shall charge a service fee
or require a minimum balance on an attorney trust account provided
that such account is required by law and that no more than fifteen
debit or credit transactions per month are made in connection with
such account.

 PRIOR LEGISLATIVE HISTORY :

2015-16: S.2868A - Amend and Recommit to Banks
2013-14: S.3240 -  Referred to Banks
2012: S.6216 - Referred to Banks

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the thirtieth day after it shall have
become a law.

2017-S2712 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2712
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2017
                                ___________
 
 Introduced  by  Sens.  PARKER, AVELLA -- 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 attorney trust accounts
 
   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-x to
 read as follows:
   § 9-X. ATTORNEY TRUST ACCOUNTS. NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW OR RULE OR REGULATION TO THE CONTRARY,  NO  BANK  OR  TRUST  COMPANY
 REGULATED BY THE STATE OF NEW YORK SHALL CHARGE A SERVICE FEE OR REQUIRE
 A  MINIMUM  BALANCE  ON AN ATTORNEY TRUST ACCOUNT, PROVIDED THAT NO MORE
 THAN FIFTEEN  DEBIT  OR  CREDIT  TRANSACTIONS  PER  MONTH  ARE  MADE  IN
 CONNECTION  WITH  SUCH ACCOUNT AND PROVIDED, FURTHER, THAT SUCH ATTORNEY
 TRUST ACCOUNT IS NON-INTEREST BEARING OR IS AN IOLA (INTEREST ON  LAWYER
 ACCOUNTS)  ACCOUNT.  FOR THE PURPOSES OF THIS SECTION, AN ATTORNEY TRUST
 ACCOUNT SHALL MEAN A SPECIAL BANKING OR CHECKING ACCOUNT REQUIRED BY LAW
 OR A RULE OF COURT FOR THE DEPOSIT OF FUNDS BELONGING TO LAW CLIENTS  OR
 OTHER PERSONS IN THE PRACTICE OF LAW.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06177-01-7

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Senate Bill S2712

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

2017-S2712 (ACTIVE) - Details

2017-S2712 (ACTIVE) - Summary

2017-S2712 (ACTIVE) - Sponsor Memo

2017-S2712 (ACTIVE) - Bill Text download pdf

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Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

co-Sponsors

Tony Avella

2017-S2712 (ACTIVE) - Details

2017-S2712 (ACTIVE) - Summary

2017-S2712 (ACTIVE) - Sponsor Memo

2017-S2712 (ACTIVE) - Bill Text download pdf

Comments