Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.
STATE OF NEW YORK
________________________________________________________________________
5031--A
2025-2026 Regular Sessions
IN ASSEMBLY
February 11, 2025
___________
Introduced by M. of A. JACOBSON, LUCAS, HYNDMAN, TAYLOR, SANTABARBARA,
GLICK, DILAN, SAYEGH, SEPTIMO, DAVILA, STECK, REYES, BURDICK,
SEAWRIGHT -- read once and referred to the Committee on Banks --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the banking law, in relation to establishing criteria
for the closure of banking accounts in the state of New York
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-ii to
2 read as follows:
3 § 9-ii. Closure of accounts. 1. All banking organizations and out-of-
4 state state banks authorized to operate and maintain branches pursuant
5 to article five-C of this chapter when closing the account of a customer
6 shall:
7 (a) provide sixty days' notice that such account is being closed,
8 whether for personal or business use, and provide the reason for such
9 closure, and
10 (b) return any remaining funds from such account within sixty days
11 after the closure of such account to the owner.
12 2. This section shall not apply to the extent that it is preempted by
13 federal law. Nothing in this section shall be construed to require any
14 act prohibited, or prohibit any act required, by federal law.
15 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03161-02-5
