Bill Text: NY A05298 | 2011-2012 | General Assembly | Introduced

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Bill Title: Provides that no agreement for preauthorized electronic fund transfers entered into on or after January first, two thousand twelve shall permit or require the transfer of any amount as a penalty or final payment after a stop payment notice has been given.

Spectrum: Moderate Partisan Bill (Democrat 12-2)

Status: (Introduced - Dead) 2011-04-20 - enacting clause stricken [A05298 Detail]

Download: New_York-2011-A05298-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5298
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 15, 2011
                                      ___________
       Introduced  by  M.  of A. TOWNS, M. MILLER, CERETTO, PHEFFER, SCHROEDER,
         GIBSON, GUNTHER -- Multi-Sponsored by -- M. of A. DenDEKKER,  GOODELL,
         MAGEE, MARKEY -- read once and referred to the Committee on Banks
       AN ACT to amend the banking law, in relation to preauthorized electronic
         fund transfers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 9-s of the banking law, as added by chapter 550  of
    2  the laws of 1998, is amended to read as follows:
    3    S  9-s.  Preauthorized  electronic  fund transfers.   1. Every banking
    4  institution which provides preauthorized electronic fund transfers  from
    5  consumer  accounts  shall, in accordance with regulations adopted by the
    6  banking board, provide consumers with  the  right  to  stop  payment  by
    7  giving written or oral notice within a specified period of time prior to
    8  such  transfer.  [Any  banking  institution which complies with the stop
    9  payment provisions of the federal Electronic Funds Transfer Act, as such
   10  act may be amended from time to time, and any regulations adopted pursu-
   11  ant thereto, shall be deemed to be in compliance with the provisions  of
   12  this section.] For purposes of this section, "banking institution" shall
   13  mean any state or federally chartered bank, trust company, savings bank,
   14  savings  and  loan  association  or credit union, and "consumer account"
   15  shall mean an account used primarily for personal, family  or  household
   16  purposes.
   17    2.  NO  AGREEMENT  FOR PREAUTHORIZED ELECTRONIC FUND TRANSFERS ENTERED
   18  INTO ON OR AFTER JANUARY FIRST, TWO  THOUSAND  TWELVE  SHALL  PERMIT  OR
   19  REQUIRE  THE  TRANSFER FROM A CONSUMER ACCOUNT OF ANY FUNDS AS A PENALTY
   20  OR A FINAL PAYMENT AFTER THE CONSUMER HAS GIVEN WRITTEN OR  ORAL  NOTICE
   21  TO STOP PAYMENT TO HIS OR HER FINANCIAL INSTITUTION.
   22    3.  ANY  BANKING  INSTITUTION  WHICH  COMPLIES  WITH  THE STOP PAYMENT
   23  PROVISIONS OF THE FEDERAL ELECTRONIC FUNDS TRANSFER ACT, AS SUCH ACT MAY
   24  BE AMENDED FROM TIME TO TIME, AND ANY REGULATIONS ADOPTED PURSUANT THER-
   25  ETO, SHALL BE DEEMED TO BE IN COMPLIANCE WITH  THE  PROVISIONS  OF  THIS
   26  SECTION.
   27    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01582-01-1