Bill Text: NY A00169 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to amend the banking law, in relation to day of deposit to day of withdrawal accounts

Spectrum: Slight Partisan Bill (Democrat 5-2)

Status: (Introduced - Dead) 2010-01-06 - referred to banks [A00169 Detail]

Download: New_York-2009-A00169-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          169
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 7, 2009
                                      ___________
       Introduced  by M. of A. JEFFRIES, PERRY, WRIGHT -- Multi-Sponsored by --
         M. of A. ALFANO, BARRA,  HYER-SPENCER,  MAYERSOHN  --  read  once  and
         referred to the Committee on Banks
       AN ACT to amend the banking law, in relation to day of deposit to day of
         withdrawal 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 98-b  to
    2  read as follows:
    3    S 98-B. DAY OF DEPOSIT TO DAY OF WITHDRAWAL ACCOUNTS. NO BANK OR TRUST
    4  COMPANY  WHICH  AGREES  TO  CREDIT INTEREST OR DIVIDENDS UPON AN ACCOUNT
    5  FROM THE DATE ON WHICH A DEPOSIT IS MADE TO  THE  DATE  THE  DEPOSIT  IS
    6  WITHDRAWN MAY PROVIDE FOR THE FORFEITURE OF ANY PART OF SUCH INTEREST OR
    7  DIVIDENDS  IN  THE  EVENT SUCH ACCOUNT IS CLOSED PRIOR TO THE END OF THE
    8  CALENDAR QUARTER OR OTHER REGULAR APPLICABLE INTEREST OR DIVIDEND  PERI-
    9  OD.  ANY INTEREST OR DIVIDENDS EARNED SHALL BE DEEMED TO BE EARNED DAILY
   10  AND SHALL BE MADE AVAILABLE TO THE DEPOSITOR AT THE TIME SUCH ACCOUNT IS
   11  CLOSED.
   12    S 2. Subdivision 3-b of section 245 of the banking law, as amended  by
   13  chapter 360 of the laws of 1984, is amended to read as follows:
   14    3-b. Subject to such limitations and restrictions as may be prescribed
   15  by  regulation  of  the banking board, a savings bank [may] SHALL credit
   16  interest on deposits DAILY from the date on which the deposit is made to
   17  the date the deposit is withdrawn.
   18    S 3. Paragraph (bb) of subdivision 4 of section  378  of  the  banking
   19  law,  as  amended by chapter 349 of the laws of 1986, is amended to read
   20  as follows:
   21    (bb) Subject to such limitations and restrictions as may be prescribed
   22  by regulation of the banking board, special savings shares,  upon  which
   23  dues  shall be paid in such sums, at such times and for such purposes as
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00310-01-9

       A. 169                              2
    1  the holder thereof may elect, and which  shall  provide  that  dividends
    2  shall  be  credited  from the date of actual receipt of such dues to the
    3  date they are withdrawn or retired.  Dividends on special savings shares
    4  shall  be  credited  DAILY and shall be made available no later than the
    5  end of a regular dividend period, or at the time  such  special  savings
    6  shares  are  withdrawn or retired if in the opinion of a majority of the
    7  board of directors it appears the savings and loan association will have
    8  sufficient profit available at the end of such regular  dividend  period
    9  to  pay dividends and if the board of directors chooses payment of divi-
   10  dends at withdrawal as an option to periodic payment of  dividends.  Any
   11  savings  and  loan  association  which does not make dividends available
   12  pursuant to the provisions of this paragraph shall promptly  notify  the
   13  superintendent  of banks of such decision. Withdrawals or retirements of
   14  special savings shares during the last three business days of any  regu-
   15  lar  dividend  period  or,  in the event that any one of such last three
   16  business days is a Saturday, withdrawals of such shares upon one of  the
   17  last  four business days of any such period may receive dividends appor-
   18  tioned for the full period.
   19    S 4. Every bank or trust company, savings bank, or  savings  and  loan
   20  association  offering  an  account  or  share pursuant to this act on or
   21  after the effective date herein shall be required to offer such  account
   22  or share in conformity with the provisions of this act. Any such account
   23  or share shall be deemed or construed as if the respective provisions of
   24  this act were contained therein.
   25    S 5. This act shall take effect on the one hundred eightieth day after
   26  it shall have become a law.