Bill Text: NY A05744 | 2017-2018 | General Assembly | Amended

---

Bill Title: Provides that every banking institution which maintains checking accounts for customers shall pay checks in the order received within account balance; provides such banks may dishonor check for insufficient funds, but then must honor smaller checks within amounts on deposit in the subject account.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2018-04-25 - amended on third reading 5744a [A05744 Detail]

Download: New_York-2017-A05744-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                         5744--A
                                                                Cal. No. 405
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 15, 2017
                                       ___________
        Introduced  by  M.  of A. ZEBROWSKI, WEPRIN -- read once and referred to
          the Committee on Banks -- ordered to  a  third  reading,  amended  and
          ordered reprinted, retaining its place on the order of third reading
        AN  ACT  to  amend  the banking law, in relation to the order in which a
          payor bank shall pay checks
          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. Banking institutions to pay checks drawn therein  in  order  of
     4  presentation.  1.  Notwithstanding  any  law,  rule or regulation to the
     5  contrary, every banking  institution  that  provides  consumer  checking
     6  accounts  shall either pay checks in the order wherein they are received
     7  or pay checks from smallest to largest dollar amount for  each  business
     8  day's transactions.
     9    2.  If  a  check  is  dishonored for insufficient funds and thereafter
    10  smaller checks which could be paid  are  received,  the  smaller  checks
    11  shall be honored within amounts on deposit in the subject account.
    12    3.  The banking institution shall disclose to consumers in writing the
    13  order in which  checks  are  drawn.  The  written  disclosure  shall  be
    14  provided  to the consumer at the time the account is opened and prior to
    15  any change in such policy. The superintendent shall promulgate rules and
    16  regulations necessary for the implementation of this section.
    17    4. As  used  in  this  section,  "consumer  checking  accounts"  means
    18  accounts  established  by natural persons primarily for personal, family
    19  or household purposes.
    20    § 2. This act shall take effect on the first of January next  succeed-
    21  ing the date on which it shall have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07483-02-8