S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5810
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 2, 2017
                                ___________
 
 Introduced  by  Sen.  SERINO -- 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  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

 S. 5810                             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.