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A06253 Summary:

BILL NOA06253
 
SAME ASSAME AS S02712
 
SPONSORWalker
 
COSPNSR
 
MLTSPNSR
 
Add 9-x, Bank L
 
Prohibits a bank or trust company from charging a service charge or requiring a minimum balance for attorney trust or IOLA accounts that are non-interest bearing in nature; defines attorney trust account.
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A06253 Actions:

BILL NOA06253
 
03/01/2017referred to banks
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A06253 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6253
 
SPONSOR: Walker
  TITLE OF BILL: An act to amend the banking law, in relation to attor- ney trust accounts   PURPOSE OF BILL: This bill would add new section 9-w to the Banking Law to provide that no bank or trust company regulated by the State of New York shall charge a service fee or require a minimum balance on an attorney trust account, provided that such account is required by law and that no more than fifteen debit or credit transactions per month are made in connection with such account and further provided that such account is non-interest bearing. This bill would also define 'attorney trust account' as a special bank or checking account required by a rule of court for deposit of funds belonging to legal clients or other persons in the practice of law.   SUMMARY OF PROVISIONS: Section 1 of the bill amends subdivision 4 of § 1204-a of the public authorities law, adding language clarifying the authority's responsibil- ity to produce annual noise abatement reports. Section 2 sets an immediate effective date.   JUSTIFICATION: An attorney in possession of any asset or sum of money belonging to a client is a fiduciary and must not commingle client funds with his or her own funds or personal or business accounts. Furthermore, an attorney must maintain in a bank or trust company within the State of New York in his or her own name, or in the name of the firm of attorneys of which he or she is a member, a special account independent from his or her personal accounts. In many areas of the state, banks require minimum deposits or service fees for the maintenance of these accounts. Such requirements can be financially burdensome to the small practicing attorney who handles only a few cases which would require the collection and deposit of clients' funds. This bill would ameliorate this situation by providing that no bank or trust company regulated by New York State shall charge a service fee or require a minimum balance on an attorney trust account provided that such account is required by law and that no more than fifteen debit or credit transactions per month are made in connection with such account.   LEGISLATIVE HISTORY: 2013-14: 53240 - Referred to Banks   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the thirtieth day after it shall have become a law.
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A06253 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6253
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 1, 2017
                                       ___________
 
        Introduced by M. of A. WALKER -- read once and referred to the Committee
          on Banks
 
        AN ACT to amend the banking law, in relation to attorney trust 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  9-x  to
     2  read as follows:
     3    § 9-x. Attorney trust accounts. Notwithstanding any other provision of
     4  law  or  rule  or  regulation  to the contrary, no bank or trust company
     5  regulated by the state of New York shall charge a service fee or require
     6  a minimum balance on an attorney trust account, provided  that  no  more
     7  than  fifteen  debit  or  credit  transactions  per  month  are  made in
     8  connection with such account and provided, further, that  such  attorney
     9  trust  account is non-interest bearing or is an IOLA (interest on lawyer
    10  accounts) account. For the purposes of this section, an  attorney  trust
    11  account shall mean a special banking or checking account required by law
    12  or  a rule of court for the deposit of funds belonging to law clients or
    13  other persons in the practice of law.
    14    § 2. This act shall take effect on the thirtieth day  after  it  shall
    15  have become a law.
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06177-01-7
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