Bill Text: NY S06545 | 2023-2024 | General Assembly | Introduced


Bill Title: Provides for joint and survivorship accounts, provides that absent indication to the contrary, funds remaining in such an account upon the death of the depositor shall be deemed part of the depositor's estate.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed) 2024-05-06 - RECOMMIT, ENACTING CLAUSE STRICKEN [S06545 Detail]

Download: New_York-2023-S06545-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6545

                               2023-2024 Regular Sessions

                    IN SENATE

                                     April 26, 2023
                                       ___________

        Introduced  by  Sen. KENNEDY -- 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 establishing  joint  and
          survivorship accounts

          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 675-a to
     2  read as follows:
     3    § 675-a. Joint accounts; joint and survivorship accounts.  1.    Joint
     4  accounts.  (a) When a deposit of cash, securities, or other property has
     5  been made or shall hereafter be made in or with any banking organization
     6  or foreign banking corporation transacting business in  this  state,  or
     7  shares  shall  have been already issued or shall be hereafter issued, in
     8  any savings and loan association or credit union transacting business in
     9  this state, in the name of such depositor  or  shareholder  and  another
    10  person and in form to be paid or delivered to either, or the survivor of
    11  them, such deposit or shares and any additions thereto or accruals ther-
    12  eon  may be paid or delivered to either during the lifetime of both, and
    13  such payment or delivery and the receipt or acquittance of  the  one  to
    14  whom  such  payment or delivery is made, shall be a valid and sufficient
    15  release and discharge to the banking organization for  all  payments  or
    16  deliveries  made  on  account  of  such  deposit  or shares prior to the
    17  receipt by the banking organization  of  notice  in  writing  signed  by
    18  either one of such persons, not to pay or deliver such deposit or shares
    19  and  the  additions  and  accruals  thereon in accordance with the terms
    20  thereof, and after receipt of any such notice, the banking  organization
    21  may  require  the  receipt  or  acquittance of both such persons for any
    22  further payments or delivery.
    23    (b) Title to the property on deposit in an account described in  para-
    24  graph  (a)  of  this subdivision or to the shares issued as described in
    25  paragraph (a) of this subdivision is solely in the depositor  no  matter

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01238-02-3

        S. 6545                             2

     1  the  source  of the property on deposit or used to acquire the shares or
     2  when the property was deposited or the shares acquired.
     3    (c) On the death of the other person during the lifetime of the depos-
     4  itor the payment or delivery to the depositor of any or all of the funds
     5  remaining  in the account shall be a valid and sufficient release to the
     6  banking organization.
     7    (d) On the death of the depositor during the  lifetime  of  the  other
     8  person,  the  banking  organization shall deliver the funds remaining in
     9  the account in accord with the contract, signature card, or other  docu-
    10  ment  between  the  banking organization and the depositor governing the
    11  account, which contract,   signature card,  or  other  document    shall
    12  include  a provision governing the disposition of the funds remaining in
    13  the account on the death of the depositor which shall be in substantial-
    14  ly the following form:
    15    On the death of the depositor, {name}, the funds in the account  shall
    16  be disposed of as follows (select one and initial):
    17    As  part  of  the  estate  of the depositor, {name}. (the account is a
    18  convenience account)
    19    To the other person, {name}. (the account is a survivorship account)
    20    (e) If the contract,  signature  card,  or  other  document  does  not
    21  include  such a provision or if it does and the depositor did not select
    22  one or the alternative the funds remaining in the account at the  depos-
    23  itor's death shall be part of the depositor's estate.
    24    2.    Convenience accounts. If the depositor has designated the inten-
    25  tion or it is conclusively presumed that the  remaining  funds  pass  as
    26  part  of  the  depositor's  estate, (a) payment or delivery to the other
    27  person of any or all of the funds remaining in the account  shall  still
    28  be  a  valid  and sufficient release to the banking organization if made
    29  prior to the receipt by the banking organization of  written  notice  of
    30  the  depositor's  death,  and (b) a banking organization which, prior to
    31  service upon it of a restraining order, injunction or other  appropriate
    32  process  from  a  court  of  competent jurisdiction prohibiting payment,
    33  makes payment to the executor, administrator or other  qualified  repre-
    34  sentative  of  the  deceased depositor's estate, shall, to the extent of
    35  such payment, be released from liability to any person claiming a  right
    36  to the funds and the receipt or acquittance of the executor, administra-
    37  tor or qualified representative to whom payment is made shall be a valid
    38  and sufficient release and discharge of the banking organization.
    39    3. Survivorship accounts. If the depositor has indicated the intention
    40  that  the remaining funds pass to the other person by right of survivor-
    41  ship, payment or delivery to the other person of any or all of the funds
    42  remaining in the account shall be a valid and sufficient release to  the
    43  banking  organization  if made prior to service upon it of a restraining
    44  order, injunction or other appropriate process from a court of competent
    45  jurisdiction prohibiting such payment.
    46    4. Regulations of the superintendent. The superintendent shall promul-
    47  gate and may from time to time amend rules and regulations which require
    48  that the depositor of a joint account under this section be informed  of
    49  the  terms and conditions of the account, including the relationship and
    50  consequences between the parties in the account and the responsibilities
    51  of the institution with which the account is established.
    52    5. Application. (a) This subdivision or any rule or regulation  there-
    53  under  shall not be deemed or construed as increasing or diminishing the
    54  rights or liability of any person or entity.
    55    (b) The provisions of this section shall apply to accounts established
    56  on or after the effective date of this section.

        S. 6545                             3

     1    § 2.  This act shall take effect on the thirtieth day after  it  shall
     2  have  become  a  law.    Effective  immediately, the addition, amendment
     3  and/or repeal of any rule or regulation necessary for the implementation
     4  of this act on  its  effective  date  are  authorized  to  be  made  and
     5  completed on or before such effective date.
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