Requires certain institutions to notify joint tenants when more than fifty percent of the value of a joint account's withdrawals are made from joint accounts.
STATE OF NEW YORK
________________________________________________________________________
3256
2013-2014 Regular Sessions
IN ASSEMBLY
January 24, 2013
___________
Introduced by M. of A. RABBITT, STEVENSON -- Multi-Sponsored by -- M. of
A. MONTESANO -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to notifying joint tenants
when certain withdrawals are made from joint accounts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (c) of section 675 of the banking law, as added
2 by chapter 777 of the laws of 1983 and paragraph one as further amended
3 by section 104 of Part A of chapter 62 of the laws of 2011, is amended
4 to read as follows:
5 (c) The banking organization, foreign banking corporation, savings and
6 loan association, or credit union transacting business in this state
7 shall send written notification to all joint tenants of an account each
8 time a joint tenant withdraws or transfers an amount equal to or greater
9 than fifty percent of the joint account's total value.
10 (d) 1. The superintendent of financial services shall promulgate and
11 may from time to time amend rules and regulations which require that the
12 joint tenants of an account established on or after the date on which
13 the rule or regulation becomes effective and representing any deposit or
14 shares governed by the foregoing provisions of this section, shall, at
15 the time the account is established be informed of the terms and condi-
16 tions of the account including the relationship and consequences between
17 the parties in the account and the responsibilities of the institution
18 with which the account is established.
19 2. This subdivision or any rule or regulation thereunder shall not be
20 deemed or construed as increasing or diminishing the rights or liability
21 of any person, or other entity.
22 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05089-01-3
