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Assembly Bill A9677

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 - On Floor Calendar

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2019-A9677 (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-A9677 (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-A9677 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9677
 
                           I N  A S S E M B L Y
 
                             February 4, 2020
                                ___________
 
 Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
   tee 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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