Bill Text: NY A03229 | 2019-2020 | General Assembly | Introduced

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Bill Title: Prohibits a bank or trust company from charging a service charge or requiring a minimum balance for attorney trust or IOLA accounts that are non-interest bearing in nature; defines attorney trust account.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to banks [A03229 Detail]

Download: New_York-2019-A03229-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3229
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 29, 2019
                                       ___________
        Introduced by M. of A. WALKER -- read once and referred to the Committee
          on Banks
        AN ACT to amend the banking law, in relation to attorney trust accounts
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The banking law is amended by adding a new section  9-x  to
     2  read as follows:
     3    § 9-x. Attorney trust accounts. Notwithstanding any other provision of
     4  law  or  rule  or  regulation  to the contrary, no bank or trust company
     5  regulated by the state of New York shall charge a service fee or require
     6  a minimum balance on an attorney trust account, provided  that  no  more
     7  than  fifteen  debit  or  credit  transactions  per  month  are  made in
     8  connection with such account and provided, further, that  such  attorney
     9  trust  account is non-interest bearing or is an IOLA (interest on lawyer
    10  accounts) account. For the purposes of this section, an  attorney  trust
    11  account shall mean a special banking or checking account required by law
    12  or  a rule of court for the deposit of funds belonging to law clients or
    13  other persons in the practice of law.
    14    § 2. This act shall take effect on the thirtieth day  after  it  shall
    15  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05951-01-9