Bill Text: NY A05781 | 2013-2014 | General Assembly | Introduced

New York Assembly Bill 5781 (Prior Session Legislation)

Introduced

Bill Title: Prohibits banking institutions from withholding insurance payment funds from a customer in excess of an amount equal to the institution's investment in the property.

Spectrum: Moderate Partisan Bill (Democrat 21-4)

Status: (Introduced - Dead) 2014-06-09 - held for consideration in banks [A05781 Detail]

Download: New_York-2013-A05781-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5781
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 6, 2013
                                      ___________
       Introduced  by M. of A. WEISENBERG, LAVINE, GUNTHER, SCARBOROUGH, ORTIZ,
         COLTON -- Multi-Sponsored by -- M. of A. ARROYO, BORELLI, COOK, ENGLE-
         BRIGHT, HENNESSEY, KEARNS, MILLER, MILLMAN, RIVERA --  read  once  and
         referred to the Committee on Banks
       AN ACT to amend the banking law, in relation to the release of insurance
         payment funds
         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  667  to
    2  read as follows:
    3    S 667. UNAUTHORIZED WITHHOLDING OF FUNDS. IT SHALL BE UNLAWFUL FOR ANY
    4  ENTITY  SUBJECT TO THE PROVISIONS OF THIS CHAPTER TO WITHHOLD FUNDS FROM
    5  A CUSTOMER'S INSURANCE CLAIM PAYMENT IN  EXCESS  OF  THE  PERCENTAGE  OF
    6  THEIR EQUITY IN THE CUSTOMER'S PROPERTY. THE ENTITY MAY ONLY WITHHOLD AN
    7  AMOUNT  OF  SUCH  FUNDS  EQUAL  TO THE PERCENTAGE OF THEIR EQUITY IN THE
    8  PROPERTY.
    9    S 2. This act shall take effect on the thirtieth day  after  it  shall
   10  have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08924-02-3