Legislation

§ 680-e. Permissible purpose. 1. A special deposit must serve at least
one permissible purpose stated in the account agreement from the time
the special deposit is created in the account agreement until
termination of the special deposit.

2. If, before termination of the special deposit, the bank or a court
determines the special deposit no longer satisfies subdivision one of
this section, sections six hundred eighty-g, six hundred eighty-h, six
hundred eighty-i and six hundred eighty-j of this article cease to apply
to any funds deposited in the special deposit after the special deposit
ceases to satisfy subdivision one of this section.

3. If, before termination of a special deposit, the bank determines
the special deposit no longer satisfies subdivision one of this section,
the bank may take action it believes is necessary under the
circumstances, including terminating the special deposit.