BILL NUMBER:  S6650

 TITLE OF BILL :  An act to amend the banking law, in relation to
public awareness of joint deposit and convenience accounts

 PURPOSE :

Relates to a public information campaign regarding the establishment
of joint deposit and convenience accounts

 SUMMARY OF PROVISIONS :

Section 1: Amends section 679 of the banking law to provide for a
public awareness campaign targeted at educating consumers on different
banking services available in the state, specifically those that can
assist vulnerable adults.

Section : Effective date.

 JUSTIFICATION :

In February 2017, the New York State Senate Committee for the Aging
held a joint public hearing regarding the incidence and prevention of
elder abuse in the State of New York. As part of its testimony at the
hearing, the New York State District Attorney's Association
recommended modifications to the banking law to require that account
              

holders be informed of the opportunity to open convenience accounts as
opposed to joint accounts when managing their finances.

Joint accounts are commonly opened when an elderly individual is
seeking assistance with paying bills or budgeting for daily living
expenses. Unfortunately, these types of accounts pose several risks
for elder abuse including financial exploitation. Pursuant to banking
law section 675, joint accounts create a legal relationship between
co-owners that includes the equal right to access funds in the account
as well as the right of survivorship when one of the co-owners dies.
As a result, vulnerable seniors are at increased risk of joint owners
withdrawing money for their own use, exposing account funds to
creditor claims, and undermining a senior's estate plan.

In contrast to joint accounts, convenience accounts - or accounts and
options similar to them - allow the depositor to retain ownership
rights, and establishes a fiduciary relationship that binds the other
person named on the account to act in the best interests of the
depositor. Due to this arrangement, criminal prosecution is more
viable when there is misuse of a vulnerable elderly person's funds.

While access to these accounts is established in law, and has been
advocated for by senior advocacy groups, the Consumer Protection
Bureau, and law enforcement, it has been reported that they are not
widely utilized and many consumers are not aware of available
restrictions that can be put on varying forms of banking accounts in
the State.

This legislation will allow for a public awareness campaign to inform
consumers on banking services and options, differences in terms of
service, and varying rights and responsibilities associated with
different types of accounts. The public awareness campaign is intended
to inform vulnerable seniors, those with conditions that impair
financial independence, as well as families and providers, of the
potential options for financial planning in the State.

 LEGISLATIVE HISTORY :

 New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.