|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Feb 24, 2021||1st report cal.432|
|Jan 12, 2021||referred to banks|
senate Bill S1465
Current Bill Status - On Floor Calendar
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S1465 (ACTIVE) - Details
S1465 (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.
S1465 (ACTIVE) - Sponsor Memo
BILL NUMBER: S1465 SPONSOR: BRESLIN TITLE OF BILL: An act to amend the banking law, in relation to the order in which a payor bank shall pay checks PURPOSE OR GENERAL IDEA OF BILL: Provides that every banking institution maintaining checking accounts for customers shall pay checks in the order received within account balances. SUMMARY OF SPECIFIC PROVISIONS: A new section 9-X is added to the banking law to require that every banking institution maintaining checking accounts for customers shall pay checks in the order received; provided, however, that 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
S1465 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 1465 2021-2022 Regular Sessions I N S E N A T E January 12, 2021 ___________ Introduced by Sen. BRESLIN -- 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 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-y to read as follows: § 9-Y. 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. LBD01720-01-1
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