S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6949
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 20, 2021
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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 establishing  joint  and
   survivorship  accounts;  and  repealing certain provisions of such law
   relating thereto

   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 675-a to
 read as follows:
   §  675-A.  JOINT  ACCOUNTS;  JOINT AND SURVIVORSHIP ACCOUNTS. 1.  JOIN
 ACCOUNTS. (A) WHEN A DEPOSIT OF CASH, SECURITIES, OR OTHER PROPERTY  HAS
 BEEN MADE OR SHALL HEREAFTER BE MADE IN OR WITH ANY BANKING ORGANIZATION
 OR  FOREIGN  BANKING  CORPORATION TRANSACTING BUSINESS IN THIS STATE, OR
 SHARES SHALL HAVE BEEN ALREADY ISSUED OR SHALL BE HEREAFTER  ISSUED,  IN
 ANY SAVINGS AND LOAN ASSOCIATION OR CREDIT UNION TRANSACTING BUSINESS IN
 THIS  STATE,  IN  THE  NAME OF SUCH DEPOSITOR OR SHAREHOLDER AND ANOTHER
 PERSON AND IN FORM TO BE PAID OR DELIVERED TO EITHER, OR THE SURVIVOR OF
 THEM, SUCH DEPOSIT OR SHARES AND ANY ADDITIONS THERETO OR ACCRUALS THER-
 EON MAY BE PAID OR DELIVERED TO EITHER DURING THE LIFETIME OF BOTH,  AND
 SUCH  PAYMENT  OR  DELIVERY AND THE RECEIPT OR ACQUITTANCE OF THE ONE TO
 WHOM SUCH PAYMENT OR DELIVERY IS MADE, SHALL BE A VALID  AND  SUFFICIENT
 RELEASE  AND  DISCHARGE  TO THE BANKING ORGANIZATION FOR ALL PAYMENTS OR
 DELIVERIES MADE ON ACCOUNT OF  SUCH  DEPOSIT  OR  SHARES  PRIOR  TO  THE
 RECEIPT  BY  THE  BANKING  ORGANIZATION  OF  NOTICE IN WRITING SIGNED BY
 EITHER ONE OF SUCH PERSONS, 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
 MAY REQUIRE THE RECEIPT OR ACQUITTANCE OF  BOTH  SUCH  PERSONS  FOR  ANY
 FURTHER PAYMENTS OR DELIVERY.
   (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
 SION, THE MAKING OF SUCH DEPOSIT OR THE ISSUANCE OF SUCH SHARES IN  SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11013-02-1

 S. 6949                             2
 
 FORM  SHALL  NOT AFFECT THE TITLE TO SUCH DEPOSIT OR SHARES, WHICH SHALL
 REMAIN IN THE DEPOSITOR, AND THE DEPOSITOR SHALL NOT  BE  CONSIDERED  TO
 HAVE  MADE A GIFT OF ANY PART OF THE DEPOSIT OR OF ANY ADDITIONS THERETO
 OR ACCRUALS THEREON TO THE OTHER PERSON.
   (C) IF AN ADDITION 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.
   (D) ON THE DEATH OF THE OTHER PERSON DURING THE LIFETIME OF THE DEPOS-
 ITOR THE PAYMENT OR DELIVERY TO THE DEPOSITOR OF ANY OR ALL OF THE FUNDS
 REMAINING IN THE ACCOUNT SHALL BE A VALID AND SUFFICIENT RELEASE TO  THE
 BANKING ORGANIZATION.
   2.  JOINT  AND SURVIVORSHIP ACCOUNTS. ON THE DEATH OF THE DEPOSITOR OF
 AN ACCOUNT ESTABLISHED UNDER SUBDIVISION ONE OF THIS SECTION DURING  THE
 LIFETIME  OF  THE OTHER PERSON, THE FUNDS REMAINING IN THE ACCOUNT SHALL
 PASS EITHER TO THE OTHER PERSON BY RIGHT OF SURVIVORSHIP OR AS  PART  OF
 THE  DEPOSITOR'S  ESTATE,  IN ACCORDANCE WITH THE WRITTEN DESIGNATION OF
 THE DEPOSITOR MADE UPON THE ESTABLISHMENT OF THE ACCOUNT. IF THE  DEPOS-
 ITOR DIES WITHOUT HAVING DESIGNATED THE DEPOSITOR'S INTENTION, THE DEPO-
 SITOR  SHALL  BE  TREATED  AS  HAVING  DESIGNATED THE INTENTION THAT THE
 REMAINING FUNDS PASS AS PART OF THE DEPOSITOR'S ESTATE. IF THE DEPOSITOR
 HAS DESIGNATED THE INTENTION THAT THE REMAINING FUNDS PASS  AS  PART  OF
 THE  DEPOSITOR'S  ESTATE, (A) PAYMENT OR DELIVERY TO THE OTHER PERSON OF
 ANY OR ALL OF THE FUNDS REMAINING IN THE ACCOUNT SHALL STILL BE A  VALID
 AND  SUFFICIENT RELEASE TO THE BANKING ORGANIZATION IF MADE PRIOR TO THE
 RECEIPT BY THE BANKING ORGANIZATION OF WRITTEN NOTICE OF THE DEPOSITOR'S
 DEATH, AND (B) A BANKING ORGANIZATION WHICH, PRIOR TO SERVICE UPON IT OF
 A RESTRAINING ORDER, INJUNCTION 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 BANKING ORGANIZATION. IF THE DEPOSITOR HAS
 INDICATED THE INTENTION THAT THE  REMAINING  FUNDS  PASS  TO  THE  OTHER
 PERSON BY RIGHT OF SURVIVORSHIP, PAYMENT OR DELIVERY TO THE OTHER PERSON
 OF ANY OR ALL OF THE FUNDS REMAINING IN THE ACCOUNT SHALL BE A VALID AND
 SUFFICIENT  RELEASE TO THE BANKING ORGANIZATION IF MADE PRIOR TO SERVICE
 UPON IT OF A RESTRAINING ORDER, INJUNCTION OR OTHER APPROPRIATE  PROCESS
 FROM A COURT OF COMPETENT JURISDICTION PROHIBITING SUCH PAYMENT.
   3.  REGULATIONS  OF  THE  SUPERINTENDENT. (A) THE SUPERINTENDENT SHALL
 PROMULGATE AND MAY FROM TIME TO TIME AMEND RULES AND  REGULATIONS  WHICH
 REQUIRE  THAT  THE  DEPOSITOR  OF  A JOINT ACCOUNT UNDER THIS SECTION BE
 INFORMED OF THE TERMS AND  CONDITIONS  OF  THE  ACCOUNT,  INCLUDING  THE
 RELATIONSHIP AND CONSEQUENCES BETWEEN THE PARTIES IN THE ACCOUNT AND THE
 RESPONSIBILITIES  OF  THE  INSTITUTION  WITH WHICH THE ACCOUNT IS ESTAB-
 LISHED.
   (B) THIS SUBDIVISION OR ANY RULE OR REGULATION THEREUNDER SHALL NOT BE
 DEEMED OR CONSTRUED AS INCREASING OR DIMINISHING THE RIGHTS OR LIABILITY
 OF ANY PERSON OR ENTITY.
   4. APPLICATION. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ACCOUNTS
 ESTABLISHED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
   § 2. Section 675 of the banking law is amended by adding a new  subdi-
 vision (d) to read as follows:
   (D)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE  CONTRARY,  THE
 PROVISIONS OF THIS SECTION SHALL APPLY ONLY TO ACCOUNTS OPENED PRIOR  TO

 S. 6949                             3
 
 THE  EFFECTIVE  DATE OF SECTION SIX HUNDRED SEVENTY-FIVE-A OF THIS ARTI-
 CLE.
   § 3. Section 678 of the banking law is REPEALED.
   §  4.  Section  679 of the banking law, as added by chapter 432 of the
 laws of 2018, is renumbered section  678  and  is  amended  to  read  as
 follows:
   §  678.  Public  awareness; banking services. The superintendent shall
 conduct a public awareness campaign to educate  consumers  on  different
 banking  services  available  in  the state, particularly those that can
 assist vulnerable adults  in  financial  planning,  including,  but  not
 limited  to,  citizens of an advanced age, individuals with cognitive or
 developmental disabilities, or those who have health or physical  issues
 that  impair their financial independence. The public awareness campaign
 shall include information regarding the  differences  between  types  of
 accounts,  including  joint  [and  convenience]  accounts  AND JOINT AND
 SURVIVORSHIP ACCOUNTS, as well as the rights and responsibilities gener-
 ally recognized for each.  The  public  awareness  campaign  shall  also
 include,  but  not  be limited to, answers to general concerns and ques-
 tions that individuals may have with respect  to  the  establishment  of
 certain  types  of  accounts  and  services,  as well as information and
 recommendations for obtaining more information.
   § 5. This act shall take effect on the thirtieth day  after  it  shall
 have  become  a  law.    Effective  immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such effective date.