Bill Text: NY S06949 | 2021-2022 | General Assembly | Introduced

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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: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2022-06-01 - referred to banks [S06949 Detail]

Download: New_York-2021-S06949-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6949

                               2021-2022 Regular Sessions

                    IN SENATE

                                      May 20, 2021
                                       ___________

        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;  and  repealing certain provisions of such law
          relating thereto

          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.  Join
     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)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
    24  sion, the making of such deposit or the issuance of such shares in  such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11013-02-1
        S. 6949                             2

     1  form  shall  not affect the title to such deposit or shares, which shall
     2  remain in the depositor, and the depositor shall not  be  considered  to
     3  have  made a gift of any part of the deposit or of any additions thereto
     4  or accruals thereon to the other person.
     5    (c) If an addition is made to such an account by anyone other than the
     6  depositor,  such an addition and accruals thereon shall be considered to
     7  have been made by the depositor.
     8    (d) On the death of the other person during the lifetime of the depos-
     9  itor the payment or delivery to the depositor of any or all of the funds
    10  remaining in the account shall be a valid and sufficient release to  the
    11  banking organization.
    12    2.  Joint  and survivorship accounts. On the death of the depositor of
    13  an account established under subdivision one of this section during  the
    14  lifetime  of  the other person, the funds remaining in the account shall
    15  pass either to the other person by right of survivorship or as  part  of
    16  the  depositor's  estate,  in accordance with the written designation of
    17  the depositor made upon the establishment of the account. If the  depos-
    18  itor dies without having designated the depositor's intention, the depo-
    19  sitor  shall  be  treated  as  having  designated the intention that the
    20  remaining funds pass as part of the depositor's estate. If the depositor
    21  has designated the intention that the remaining funds pass  as  part  of
    22  the  depositor's  estate, (a) payment or delivery to the other person of
    23  any or all of the funds remaining in the account shall still be a  valid
    24  and  sufficient release to the banking organization if made prior to the
    25  receipt by the banking organization of written notice of the depositor's
    26  death, and (b) a banking organization which, prior to service upon it of
    27  a restraining order, injunction or  other  appropriate  process  from  a
    28  court  of  competent  jurisdiction prohibiting payment, makes payment to
    29  the executor, administrator or other  qualified  representative  of  the
    30  deceased  depositor's  estate,  shall, to the extent of such payment, be
    31  released from liability to any person claiming a right to the funds  and
    32  the  receipt  or acquittance of the executor, administrator or qualified
    33  representative to whom payment is made shall be a valid  and  sufficient
    34  release  and discharge of the banking organization. If the depositor has
    35  indicated the intention that the  remaining  funds  pass  to  the  other
    36  person by right of survivorship, payment or delivery to the other person
    37  of any or all of the funds remaining in the account shall be a valid and
    38  sufficient  release to the banking organization if made prior to service
    39  upon it of a restraining order, injunction or other appropriate  process
    40  from a court of competent jurisdiction prohibiting such payment.
    41    3.  Regulations  of  the  superintendent. (a) The superintendent shall
    42  promulgate and may from time to time amend rules and  regulations  which
    43  require  that  the  depositor  of  a joint account under this section be
    44  informed of the terms and  conditions  of  the  account,  including  the
    45  relationship and consequences between the parties in the account and the
    46  responsibilities  of  the  institution  with which the account is estab-
    47  lished.
    48    (b) This subdivision or any rule or regulation thereunder shall not be
    49  deemed or construed as increasing or diminishing the rights or liability
    50  of any person or entity.
    51    4. Application. The provisions of this section shall apply to accounts
    52  established on or after the effective date of this section.
    53    § 2. Section 675 of the banking law is amended by adding a new  subdi-
    54  vision (d) to read as follows:
    55    (d)  Notwithstanding  any  provision  of  law  to  the  contrary,  the
    56  provisions of this section shall apply only to accounts opened prior  to
        S. 6949                             3

     1  the  effective  date of section six hundred seventy-five-a of this arti-
     2  cle.
     3    § 3. Section 678 of the banking law is REPEALED.
     4    §  4.  Section  679 of the banking law, as added by chapter 432 of the
     5  laws of 2018, is renumbered section  678  and  is  amended  to  read  as
     6  follows:
     7    §  678.  Public  awareness; banking services. The superintendent shall
     8  conduct a public awareness campaign to educate  consumers  on  different
     9  banking  services  available  in  the state, particularly those that can
    10  assist vulnerable adults  in  financial  planning,  including,  but  not
    11  limited  to,  citizens of an advanced age, individuals with cognitive or
    12  developmental disabilities, or those who have health or physical  issues
    13  that  impair their financial independence. The public awareness campaign
    14  shall include information regarding the  differences  between  types  of
    15  accounts,  including  joint  [and  convenience]  accounts  and joint and
    16  survivorship accounts, as well as the rights and responsibilities gener-
    17  ally recognized for each.  The  public  awareness  campaign  shall  also
    18  include,  but  not  be limited to, answers to general concerns and ques-
    19  tions that individuals may have with respect  to  the  establishment  of
    20  certain  types  of  accounts  and  services,  as well as information and
    21  recommendations for obtaining more information.
    22    § 5. This act shall take effect on the thirtieth day  after  it  shall
    23  have  become  a  law.    Effective  immediately, the addition, amendment
    24  and/or repeal of any rule or regulation necessary for the implementation
    25  of this act on  its  effective  date  are  authorized  to  be  made  and
    26  completed on or before such effective date.