Bill Text: NY S02797 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 1-0)

Status: (Introduced - Dead) 2018-04-25 - PRINT NUMBER 2797A [S02797 Detail]

Download: New_York-2017-S02797-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2797
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 17, 2017
                                       ___________
        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks
        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.  Notwithstanding any other law, rule or regulation to  the
     5  contrary, every banking institution which provides checking accounts for
     6  its customers shall, in paying such checks as are presented for payment,
     7  pay  the checks in the order wherein they are received; provided, howev-
     8  er, if a check is dishonored for insufficient funds and thereafter smal-
     9  ler checks which could be paid are received, the smaller checks shall be
    10  honored within amounts on deposit in the subject account.
    11    § 2. This act shall take effect on the first of January next  succeed-
    12  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.
                                                                   LBD07483-01-7