Bill Text: NY S05810 | 2017-2018 | General Assembly | Introduced
Bill Title: Provides that upon the establishment of a joint deposit account, a banking organization shall offer a convenience account.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S05810 Detail]
Download: New_York-2017-S05810-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5810 2017-2018 Regular Sessions IN SENATE May 2, 2017 ___________ Introduced by Sen. SERINO -- 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 joint deposit and convenience accounts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (c) of section 675 of the banking law is relet- 2 tered subdivision (d) and a new subdivision (c) is added to read as 3 follows: 4 (c) Upon the establishment and opening of a joint deposit of cash, 5 securities, or other property as defined in subdivision (a) of this 6 section, a banking organization, a foreign bank corporation transacting 7 business in this state, a savings and loan association or a credit union 8 transacting business in this state shall offer an account for conven- 9 ience as defined by section six hundred seventy-eight of this article to 10 the depositor. 11 § 2. Section 678 of the banking law, as added by chapter 436 of the 12 laws of 1990, subdivision 2 as further amended by section 104 of part A 13 of chapter 62 of the laws of 2011, is amended to read as follows: 14 § 678. Accounts for convenience only. 1. Upon the establishment and 15 opening of a joint deposit of cash, securities, or other property as 16 defined in subdivision (a) of section six hundred seventy-five of this 17 article, a banking organization, a foreign bank corporation transacting 18 business in this state, a savings and loan association or a credit union 19 transacting business in this state shall offer an account for conven- 20 ience as defined in this section. 21 2. When a deposit of cash, securities or other property has been made, 22 or shares shall be issued in or with any banking organization or foreign 23 banking corporation transacting business in this state, in an account 24 established after the effective date of this section, in the name of a 25 depositor and another person and in form to be paid or delivered to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10825-02-7S. 5810 2 1 either "for the convenience" of the depositor, the making of such depos- 2 it or the issuance of such shares shall not affect the title to such 3 deposit or shares and the depositor shall not be considered to have made 4 a gift of one-half the deposit or of any additions or accruals thereon 5 to the other person, and, on the death of the depositor, the other 6 person shall have no right of survivorship in the account. If an addi- 7 tion is made to such an account by anyone other than the depositor, such 8 an addition and accruals thereon shall be considered to have been made 9 by the depositor. Such deposit or shares, together with all additions 10 and accruals thereon, may be paid or delivered to the depositor or the 11 other person, and such payment or delivery and the receipt or acquit- 12 tance of the one to whom such payment or delivery is made, shall be a 13 valid and sufficient release and discharge to the banking organization 14 or foreign banking corporation prior to the receipt by the banking 15 organization or foreign banking corporation of notice in writing signed 16 by the depositor not to pay or deliver such deposit or shares and the 17 additions and accruals thereon in accordance with the terms thereof, and 18 after receipt of any such notice, the banking organization or foreign 19 banking corporation may require the receipt or acquittance of the depos- 20 itor for any further payments or delivery. If the depositor is dead, 21 such payment or delivery to the other person shall be a valid and suffi- 22 cient release to the banking organization or foreign banking corporation 23 prior to the receipt by the banking organization or foreign banking 24 corporation of written notice of the depositor's death. A banking organ- 25 ization or foreign banking corporation which, upon the death of the 26 depositor and prior to service upon it of a restraining order, injunc- 27 tion or other appropriate process from a court of competent jurisdiction 28 prohibiting payment, makes payment to the executor, administrator or 29 other qualified representative of the deceased depositor's estate, 30 shall, to the extent of such payment, be released from liability to any 31 person claiming a right to the funds and the receipt or acquittance of 32 the executor, administrator or qualified representative to whom payment 33 is made shall be a valid and sufficient release and discharge of the 34 financial institution. 35 [2.] 3. The superintendent of financial services shall promulgate and 36 may from time to time amend rules and regulations which require that a 37 depositor who requests the establishment of an account in the name of 38 the depositor and another person "for the convenience" of the depositor 39 be informed of the terms and conditions of the account described in 40 subdivision [one] two of this section, including the relationship and 41 consequences between the parties in such an account, the difference 42 between such an account and a joint account established under section 43 six hundred seventy-five of this article, and the responsibilities of 44 the institution with which such an account is established. This subdivi- 45 sion or any rule or regulation thereunder shall not be deemed or 46 construed as increasing or diminishing the rights or liability of any 47 person, or other entity. 48 § 3. This act shall take effect immediately.
