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Assembly Bill A5031A

2025-2026 Legislative Session

Establishes standards for the closure of banking accounts in the state of New York

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Current Bill Status - In Senate Committee Rules Committee

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Bill Amendments

co-Sponsors

2025-A5031 - Details

See Senate Version of this Bill:
S4603
Current Committee:
Senate Rules
Law Section:
Banking Law
Laws Affected:
Add §9-ii, Bank L
Versions Introduced in 2023-2024 Legislative Session:
A9210, S9757

2025-A5031 - Summary

Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.

2025-A5031 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5031
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 11, 2025
                                ___________
 
 Introduced  by  M. of A. JACOBSON, LUCAS, HYNDMAN, TAYLOR, SANTABARBARA,
   GLICK,  DILAN,  SAYEGH,  SEPTIMO,  DAVILA,  STECK,   REYES,   BURDICK,
   SEAWRIGHT -- read once and referred to the Committee on Banks
 
 AN  ACT  to  amend the banking law, in relation to establishing criteria
   for the closure of banking accounts in the state of New York

   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-ii to
 read as follows:
   § 9-II. CLOSURE OF ACCOUNTS. ALL  BANKING  ORGANIZATIONS  AND  OUT-OF-
 STATE  STATE  BANKS AUTHORIZED TO OPERATE AND MAINTAIN BRANCHES PURSUANT
 TO ARTICLE FIVE-C OF THIS CHAPTER WHEN CLOSING THE ACCOUNT OF A CUSTOMER
 SHALL:
   (A) PROVIDE SIXTY DAYS' NOTICE THAT  SUCH  ACCOUNT  IS  BEING  CLOSED,
 WHETHER  FOR  PERSONAL  OR BUSINESS USE, AND PROVIDE THE REASON FOR SUCH
 CLOSURE; PROVIDED THAT NOTHING IN THIS SECTION  SHALL  BE  CONSTRUED  TO
 PREEMPT  ANY  FEDERAL LAW THAT PROHIBITS DISCLOSURE OF THE REASON FOR AN
 ACCOUNT CLOSURE; AND
   (B) RETURN ANY REMAINING FUNDS FROM SUCH  ACCOUNT  WITHIN  SIXTY  DAYS
 AFTER THE CLOSURE OF SUCH ACCOUNT TO THE OWNER.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03161-01-5

co-Sponsors

2025-A5031A (ACTIVE) - Details

See Senate Version of this Bill:
S4603
Current Committee:
Senate Rules
Law Section:
Banking Law
Laws Affected:
Add §9-ii, Bank L
Versions Introduced in 2023-2024 Legislative Session:
A9210, S9757

2025-A5031A (ACTIVE) - Summary

Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.

2025-A5031A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5031--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 11, 2025
                                ___________
 
 Introduced  by  M. of A. JACOBSON, LUCAS, HYNDMAN, TAYLOR, SANTABARBARA,
   GLICK,  DILAN,  SAYEGH,  SEPTIMO,  DAVILA,  STECK,   REYES,   BURDICK,
   SEAWRIGHT  --  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 criteria
   for the closure of banking accounts in the state of New York
 
   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-ii to
 read as follows:
   § 9-II. CLOSURE OF ACCOUNTS. 1. ALL BANKING ORGANIZATIONS AND  OUT-OF-
 STATE  STATE  BANKS AUTHORIZED TO OPERATE AND MAINTAIN BRANCHES PURSUANT
 TO ARTICLE FIVE-C OF THIS CHAPTER WHEN CLOSING THE ACCOUNT OF A CUSTOMER
 SHALL:
   (A) PROVIDE SIXTY DAYS' NOTICE THAT  SUCH  ACCOUNT  IS  BEING  CLOSED,
 WHETHER  FOR  PERSONAL  OR BUSINESS USE, AND PROVIDE THE REASON FOR SUCH
 CLOSURE, AND
   (B) RETURN ANY REMAINING FUNDS FROM SUCH  ACCOUNT  WITHIN  SIXTY  DAYS
 AFTER THE CLOSURE OF SUCH ACCOUNT TO THE OWNER.
   2.  THIS SECTION SHALL NOT APPLY TO THE EXTENT THAT IT IS PREEMPTED BY
 FEDERAL LAW. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO  REQUIRE  ANY
 ACT PROHIBITED, OR PROHIBIT ANY ACT REQUIRED, BY FEDERAL LAW.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03161-02-5

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