Bill Text: NY A09210 | 2023-2024 | General Assembly | Amended

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Bill Title: Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Engrossed) 2024-05-15 - REFERRED TO BANKS [A09210 Detail]

Download: New_York-2023-A09210-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9210--A

                   IN ASSEMBLY

                                    February 16, 2024
                                       ___________

        Introduced  by  M. of A. JACOBSON, LUCAS, HYNDMAN, TAYLOR, SANTABARBARA,
          GLICK, DILAN, WEPRIN, SAYEGH, SEPTIMO, DAVILA, STECK,  REYES  --  read
          once  and  referred  to  the  Committee on Banks -- recommitted to the
          Committee on Banks in accordance with Assembly Rule 3, sec. 2

        AN ACT to amend the banking law, in relation  to  establishing  criteria
          for the closure of banking accounts in the state of New York

          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-ii  to
     2  read as follows:
     3    §  9-ii.  Closure  of  accounts. All banking organizations and out-of-
     4  state state banks authorized to operate and maintain  branches  pursuant
     5  to article five-C of this chapter when closing the account of a customer
     6  shall:
     7    (a)  provide  sixty  days'  notice  that such account is being closed,
     8  whether for personal or business use, and provide the  reason  for  such
     9  closure;  provided  that  nothing  in this section shall be construed to
    10  preempt any federal law that prohibits disclosure of the reason  for  an
    11  account closure; and
    12    (b)  return  any  remaining  funds from such account within sixty days
    13  after the closure of such account to the owner.
    14    § 2. This act shall take effect immediately.





         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14062-02-4