Assembly Bill A1578

2023-2024 Legislative Session

Establishes joint and survivorship accounts

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2023-A1578 - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add §675-a, amd §§675 & 678, rpld §678, ren §679 to be §678, Bank L
Versions Introduced in 2021-2022 Legislative Session:
A8002

2023-A1578 - Summary

Provides for joint and survivorship accounts; provides that absent indication to the contrary, funds remaining in such an account upon the death of the depositor shall be deemed part of the depositor's estate.

2023-A1578 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1578
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced  by M. of A. WALLACE -- read once and referred to the Commit-
   tee 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.
                                                            LBD01238-01-3
              

co-Sponsors

2023-A1578A (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add §675-a, amd §§675 & 678, rpld §678, ren §679 to be §678, Bank L
Versions Introduced in 2021-2022 Legislative Session:
A8002

2023-A1578A (ACTIVE) - Summary

Provides for joint and survivorship accounts; provides that absent indication to the contrary, funds remaining in such an account upon the death of the depositor shall be deemed part of the depositor's estate.

2023-A1578A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1578--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced by M. of A. WALLACE, TAPIA, LUPARDO -- read once and referred
   to  the  Committee  on  Banks  --  committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the banking law, in relation to establishing  joint  and
   survivorship accounts

   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.    JOINT
 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) TITLE TO THE PROPERTY ON DEPOSIT IN AN ACCOUNT DESCRIBED IN  PARA-
 GRAPH  (A)  OF  THIS SUBDIVISION OR TO THE SHARES ISSUED AS DESCRIBED IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01238-03-3
              

Comments

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Hani_Sarji
11 months ago

Convenience accounts are inconvenient because they only create confusion. They should be repealed, not made the default. Convenience accounts are superfluous since they are the functional equivalent of an account with a signed power of attorney, yet they provide none of the protections of powers of attorney. If there is an issue with a right of survivorship standard, then that should be changed. If the problem is with the current moiety rule, then that can be changed. There are opportunities to change existing law without enacting convenience accounts as the default. Just pause and think: In a convenience account, what legal protections does the account holder have against "the other person"? Is the "other person" an agent? Does "the other person" have to act in the best interest of the account holder? A bank account with a power of attorney is superior in every respect to a convenience account.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.