Bill Text: NY S07173 | 2011-2012 | General Assembly | Introduced
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 minus the first overdraft charge in the subject account.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-05-01 - REFERRED TO BANKS [S07173 Detail]
Download: New_York-2011-S07173-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7173
I N S E N A T E
May 1, 2012
___________
Introduced by Sens. SALAND, 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-v to
2 read as follows:
3 S 9-V. 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 MINUS THE FIRST OVERDRAFT CHARGE IN
11 THE SUBJECT ACCOUNT.
12 S 2. This act shall take effect on the first of January next succeed-
13 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.
LBD05215-06-2
