S T A T E O F N E W Y O R K
________________________________________________________________________
8549--A
2025-2026 Regular Sessions
I N A S S E M B L Y
May 20, 2025
___________
Introduced by M. of A. LAVINE -- 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 spousal joint accounts,
non-spousal accounts and convenience accounts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 675 of the banking law is amended by adding a new
subdivision (d) to read as follows:
(D) THE PROVISIONS OF THIS SECTION SHALL APPLY TO ACCOUNTS ESTABLISHED
BEFORE THE EFFECTIVE DATE OF SECTIONS SIX HUNDRED SEVENTY-FIVE-A AND SIX
HUNDRED SEVENTY-FIVE-B OF THIS ARTICLE AND WHICH HAVE NOT BEEN MODIFIED
BY ADDING OR DELETING A SIGNATORY TO SUCH ACCOUNT ON OR AFTER THE EFFEC-
TIVE DATE OF SUCH SECTIONS SIX HUNDRED SEVENTY-FIVE-A AND SIX HUNDRED
SEVENTY-FIVE-B.
§ 2. Section 678 of the banking law is amended by adding a new subdi-
vision 3 to read as follows:
3. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ACCOUNTS ESTABLISHED
BEFORE THE EFFECTIVE DATE OF SECTIONS SIX HUNDRED SEVENTY-FIVE-A AND SIX
HUNDRED SEVENTY-FIVE-B OF THIS ARTICLE.
§ 3. The banking law is amended by adding two new sections 675-a and
675-b to read as follows:
§ 675-A. SPOUSAL JOINT DEPOSITS AND SHARES; OWNERSHIP AND PAYMENT
DURING LIFETIME AND AFTER THE DEATH OF ONE OF THE SPOUSES. 1. WHEN A
DEPOSIT OF CASH, SECURITIES OR OTHER PROPERTY IS MADE IN OR WITH ANY
BANKING ORGANIZATION OR FOREIGN BANKING CORPORATION TRANSACTING BUSINESS
IN THIS STATE OR SHARES ARE ISSUED IN ANY SAVING AND LOAN ASSOCIATION OR
CREDIT UNION TRANSACTING BUSINESS IN THIS STATE, IN AN ACCOUNT ESTAB-
LISHED AFTER THE EFFECTIVE DATE OF THIS SECTION IN THE NAME OF SUCH
DEPOSITOR OR SHAREHOLDER AND ANOTHER PERSON, AND THE DEPOSITOR AND SUCH
OTHER PERSON ARE THE ONLY PARTIES TO THE ACCOUNT AND THEY ARE SPOUSES AT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11949-03-5
A. 8549--A 2
THE TIME THE CONTRACT, SIGNATURE CARD OR OTHER DOCUMENT BETWEEN THEM AND
THE BANKING ORGANIZATION OR FOREIGN BANKING CORPORATION IS SIGNED, OR
THEY INDICATE THAT THEY ARE SPOUSES ON SUCH CONTRACT, SIGNATURE CARD OR
OTHER DOCUMENT AT THE TIME IT IS SIGNED, AND IN FORM TO BE PAID TO OR
DELIVERED TO EITHER OF THEM, SUCH DEPOSIT OR SHARES AND ANY ADDITIONS
THERETO MADE, BY EITHER OF SUCH PERSONS, AFTER THE MAKING THEREOF, SHALL
BECOME THE PROPERTY OF SUCH PERSONS AS JOINT TENANTS WITH RIGHT OF
SURVIVORSHIP AND THE SAME, TOGETHER WITH ALL ADDITIONS AND ACCRUALS
THEREON, SHALL BE HELD FOR THE EXCLUSIVE USE OF THE PERSONS SO NAMED,
AND MAY BE PAID OR DELIVERED TO EITHER DURING THE LIFETIME OF BOTH OR TO
THE SURVIVOR AFTER THE DEATH OF ONE OF THEM, AND SUCH PAYMENT OR DELIV-
ERY 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 OR FOREIGN BANKING CORPORATION FOR ALL
PAYMENTS OR DELIVERIES MADE ON ACCOUNT OF SUCH DEPOSIT OR SHARES PRIOR
TO THE RECEIPT BY THE BANKING ORGANIZATION OR FOREIGN BANKING CORPO-
RATION OF NOTICE IN WRITING SIGNED BY ANY ONE OF SUCH JOINT TENANTS, 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 OR FOREIGN BANKING CORPORATION MAY
REQUIRE THE RECEIPT OR ACQUITTANCE OF BOTH SUCH JOINT TENANTS FOR ANY
FURTHER PAYMENTS OR DELIVERY.
2. THE MAKING OF SUCH DEPOSIT OR THE ISSUANCE OF SUCH SHARES IN SUCH
FORM SHALL, IN THE ABSENCE OF FRAUD OR UNDUE INFLUENCE, BE PRIMA FACIE
EVIDENCE, IN ANY ACTION OR PROCEEDING TO WHICH THE BANKING ORGANIZATION,
FOREIGN BANKING CORPORATION, SURVIVING DEPOSITOR OR SHAREHOLDER IS A
PARTY, OF THE INTENTION OF BOTH DEPOSITORS OR SHAREHOLDERS TO CREATE A
JOINT TENANCY AND TO VEST TITLE TO SUCH DEPOSIT OR SHARES, AND ADDITIONS
AND ACCRUALS THEREON, IN SUCH SURVIVOR. THE BURDEN OF PROOF IN REFUTING
SUCH PRIMA FACIE EVIDENCE IS UPON THE PARTY OR PARTIES CHALLENGING THE
TITLE OF THE SURVIVOR.
3. (A) THE SUPERINTENDENT SHALL PROMULGATE, AND MAY FROM TIME TO TIME
AMEND, RULES AND REGULATIONS WHICH REQUIRE THAT THE JOINT TENANTS OF AN
ACCOUNT ESTABLISHED ON OR AFTER THE DATE ON WHICH THE RULE OR REGULATION
BECOMES EFFECTIVE AND REPRESENTING ANY DEPOSIT OR SHARES GOVERNED BY THE
FOREGOING PROVISIONS OF THIS SECTION, SHALL, AT THE TIME THE ACCOUNT IS
ESTABLISHED, 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.
(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 OTHER ENTITY.
§ 675-B. NON-SPOUSAL DEPOSITS AND SHARES; OWNERSHIP AND PAYMENT DURING
LIFETIME AND AFTER THE DEATH OF THE DEPOSITOR. 1. NON-SPOUSAL ACCOUNTS.
(A) WHEN A DEPOSIT OF CASH, SECURITIES OR OTHER PROPERTY IS MADE IN OR
WITH ANY BANKING ORGANIZATION OR FOREIGN BANKING CORPORATION TRANSACTING
BUSINESS IN THIS STATE OR SHARES ARE ISSUED IN ANY SAVING AND LOAN ASSO-
CIATION OR CREDIT UNION TRANSACTING BUSINESS IN THIS STATE, IN AN
ACCOUNT ESTABLISHED AFTER THE EFFECTIVE DATE OF THIS SECTION IN THE NAME
OF SUCH DEPOSITOR OR SHAREHOLDER AND ANOTHER PERSON OR PERSONS, AND IN
FORM TO BE PAID OR DELIVERED TO ANY OF THE DEPOSITOR OR OTHER SUCH
PERSON OR PERSONS, IF NONE OF THE OTHER PERSONS IS THE SPOUSE OF THE
DEPOSITOR, OR THE DEPOSITOR HAS NOT INDICATED ON THE CONTRACT, SIGNATURE
CARD OR OTHER DOCUMENT BETWEEN THE DEPOSITOR AND THE BANKING ORGANIZA-
TION OR FOREIGN BANKING CORPORATION AT THE TIME IT IS SIGNED THAT ANY OF
A. 8549--A 3
THE OTHER PERSONS IS THE SPOUSE OF THE DEPOSITOR, SUCH DEPOSIT OR SHARES
AND ANY ADDITIONS THERETO OR ACCRUALS THEREON MAY BE PAID OR DELIVERED
TO EITHER OR ANY DURING THE LIFETIME OF THE DEPOSITOR, 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 ANY 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 ALL 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
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 ALL THE OTHER PERSONS DURING THE LIFETIME OF THE
DEPOSITOR, 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 OR PERSONS, THE BANKING ORGANIZATION SHALL DELIVER THE FUNDS
REMAINING IN THE ACCOUNT IN ACCORDANCE WITH THE CONTRACT, SIGNATURE
CARD, OR OTHER DOCUMENT BETWEEN THE BANKING ORGANIZATION AND THE DEPOS-
ITOR 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 SUBSTANTIALLY 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 OR PERSONS {NAMES} IN EQUAL SHARES (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 OTHER ALTERNATIVE, THE FUNDS REMAINING IN THE ACCOUNT AT THE
DEPOSITOR'S DEATH SHALL BE PART OF THE DEPOSITOR'S ESTATE.
2. CONVENIENCE ACCOUNTS. IF THE DEPOSITOR HAS DESIGNATED THE INTENTION
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 OR
PERSONS 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 OR PERSONS BY RIGHT OF
A. 8549--A 4
SURVIVORSHIP, PAYMENT OR DELIVERY TO THE OTHER PERSON OR PERSONS OF ANY
OR ALL OF THE FUNDS REMAINING IN THE ACCOUNT SHALL BE A VALID AND SUFFI-
CIENT 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.
§ 4. This act shall take effect July 1, 2026. Effective immediately,
the addition, amendment and/or repeal of any rule or regulation neces-
sary for the implementation of this act on its effective date are
authorized to be made and completed on or before such effective date.