S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6545
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 26, 2023
                                ___________
 
 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
 
   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
 PARAGRAPH (A) OF THIS SUBDIVISION IS SOLELY IN THE DEPOSITOR  NO  MATTER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01238-02-3
              

 S. 6545                             2
 
 THE  SOURCE  OF THE PROPERTY ON DEPOSIT OR USED TO ACQUIRE THE SHARES OR
 WHEN THE PROPERTY WAS DEPOSITED OR THE SHARES ACQUIRED.
   (C) 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.
   (D) ON THE DEATH OF THE DEPOSITOR DURING THE  LIFETIME  OF  THE  OTHER
 PERSON,  THE  BANKING  ORGANIZATION SHALL DELIVER THE FUNDS REMAINING IN
 THE ACCOUNT IN ACCORD WITH THE CONTRACT, SIGNATURE CARD, OR OTHER  DOCU-
 MENT  BETWEEN  THE  BANKING ORGANIZATION AND THE DEPOSITOR GOVERNING THE
 ACCOUNT, WHICH CONTRACT,   SIGNATURE CARD,  OR  OTHER  DOCUMENT    SHALL
 INCLUDE  A PROVISION GOVERNING THE DISPOSITION OF THE FUNDS REMAINING IN
 THE ACCOUNT ON THE DEATH OF THE DEPOSITOR WHICH SHALL BE IN SUBSTANTIAL-
 LY THE FOLLOWING FORM:
   ON THE DEATH OF THE DEPOSITOR, {NAME}, THE FUNDS IN THE ACCOUNT  SHALL
 BE DISPOSED OF AS FOLLOWS (SELECT ONE AND INITIAL):
   AS  PART  OF  THE  ESTATE  OF THE DEPOSITOR, {NAME}. (THE ACCOUNT IS A
 CONVENIENCE ACCOUNT)
   TO THE OTHER PERSON, {NAME}. (THE ACCOUNT IS A SURVIVORSHIP ACCOUNT)
   (E) IF THE CONTRACT,  SIGNATURE  CARD,  OR  OTHER  DOCUMENT  DOES  NOT
 INCLUDE  SUCH A PROVISION OR IF IT DOES AND THE DEPOSITOR DID NOT SELECT
 ONE OR THE ALTERNATIVE THE FUNDS REMAINING IN THE ACCOUNT AT THE  DEPOS-
 ITOR'S DEATH SHALL BE PART OF THE DEPOSITOR'S ESTATE.
   2.    CONVENIENCE ACCOUNTS. IF THE DEPOSITOR HAS DESIGNATED THE INTEN-
 TION OR IT IS CONCLUSIVELY PRESUMED 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  REPRE-
 SENTATIVE  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, ADMINISTRA-
 TOR OR QUALIFIED REPRESENTATIVE TO WHOM PAYMENT IS MADE SHALL BE A VALID
 AND SUFFICIENT RELEASE AND DISCHARGE OF THE BANKING ORGANIZATION.
   3. SURVIVORSHIP ACCOUNTS. IF THE DEPOSITOR HAS INDICATED THE INTENTION
 THAT  THE REMAINING FUNDS PASS TO THE OTHER PERSON BY RIGHT OF SURVIVOR-
 SHIP, 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.
   4. REGULATIONS OF THE SUPERINTENDENT. THE SUPERINTENDENT SHALL PROMUL-
 GATE 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 ESTABLISHED.
   5. APPLICATION. (A) THIS SUBDIVISION OR ANY RULE OR REGULATION  THERE-
 UNDER  SHALL NOT BE DEEMED OR CONSTRUED AS INCREASING OR DIMINISHING THE
 RIGHTS OR LIABILITY OF ANY PERSON OR ENTITY.
   (B) THE PROVISIONS OF THIS SECTION SHALL APPLY TO ACCOUNTS ESTABLISHED
 ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
 S. 6545                             3
 
   § 2.  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.