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Assembly Bill A1931

2019-2020 Legislative Session

Provides that every banking institution maintaining checking accounts for customers shall pay checks in the order received within account balance

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Archive: Last Bill Status - Stricken

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2019-A1931 (ACTIVE) - Details

See Senate Version of this Bill:
S982
Law Section:
Banking Law
Laws Affected:
Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: A6685, S8146
2011-2012: A3558, S1195
2013-2014: A3511, S1156
2015-2016: A4981, S794
2017-2018: A5744, S2797
2021-2022: A1073, S1465

2019-A1931 (ACTIVE) - Summary

Provides that every banking institution which maintains checking accounts for customers shall pay checks in the order received within account balance; provides such banks may dishonor check for insufficient funds, but then must honor smaller checks within amounts on deposit in the subject account.

2019-A1931 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1931
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 18, 2019
                                ___________
 
 Introduced  by  M.  of A. ZEBROWSKI, WEPRIN -- read once and referred to
   the Committee on Banks
 
 AN ACT to amend the banking law, in relation to the  order  in  which  a
   payor bank shall pay checks
 
   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.  BANKING  INSTITUTIONS TO PAY CHECKS DRAWN THEREIN IN ORDER OF
 PRESENTATION. 1. NOTWITHSTANDING ANY LAW,  RULE  OR  REGULATION  TO  THE
 CONTRARY,  EVERY  BANKING  INSTITUTION  THAT  PROVIDES CONSUMER CHECKING
 ACCOUNTS SHALL EITHER PAY CHECKS IN THE ORDER WHEREIN THEY ARE  RECEIVED
 OR  PAY  CHECKS FROM SMALLEST TO LARGEST DOLLAR AMOUNT FOR EACH BUSINESS
 DAY'S TRANSACTIONS.
   2. IF A CHECK IS DISHONORED  FOR  INSUFFICIENT  FUNDS  AND  THEREAFTER
 SMALLER  CHECKS  WHICH  COULD  BE  PAID ARE RECEIVED, THE SMALLER CHECKS
 SHALL BE HONORED WITHIN AMOUNTS ON DEPOSIT IN THE SUBJECT ACCOUNT.
   3. THE BANKING INSTITUTION SHALL DISCLOSE TO CONSUMERS IN WRITING  THE
 ORDER  IN  WHICH  CHECKS  ARE  DRAWN.  THE  WRITTEN  DISCLOSURE SHALL BE
 PROVIDED TO THE CONSUMER AT THE TIME THE ACCOUNT IS OPENED AND PRIOR  TO
 ANY CHANGE IN SUCH POLICY. THE SUPERINTENDENT SHALL PROMULGATE RULES AND
 REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION.
   4.  AS  USED  IN  THIS  SECTION,  "CONSUMER  CHECKING  ACCOUNTS" MEANS
 ACCOUNTS ESTABLISHED BY NATURAL PERSONS PRIMARILY FOR  PERSONAL,  FAMILY
 OR HOUSEHOLD PURPOSES.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01546-01-9

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