Bill Text: NY S05001 | 2019-2020 | General Assembly | Introduced

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) 2019-04-03 - REFERRED TO BANKS [S05001 Detail]

Download: New_York-2019-S05001-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 3, 2019
        Introduced  by  Sen.  PARKER -- 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 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.