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 in the subject account.
STATE OF NEW YORK
________________________________________________________________________
1931
2019-2020 Regular Sessions
IN ASSEMBLY
January 18, 2019
___________
Introduced by M. of A. ZEBROWSKI, WEPRIN -- read once and referred 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-x to
2 read as follows:
3 § 9-x. Banking institutions to pay checks drawn therein in order of
4 presentation. 1. Notwithstanding any law, rule or regulation to the
5 contrary, every banking institution that provides consumer checking
6 accounts shall either pay checks in the order wherein they are received
7 or pay checks from smallest to largest dollar amount for each business
8 day's transactions.
9 2. If a check is dishonored for insufficient funds and thereafter
10 smaller checks which could be paid are received, the smaller checks
11 shall be honored within amounts on deposit in the subject account.
12 3. The banking institution shall disclose to consumers in writing the
13 order in which checks are drawn. The written disclosure shall be
14 provided to the consumer at the time the account is opened and prior to
15 any change in such policy. The superintendent shall promulgate rules and
16 regulations necessary for the implementation of this section.
17 4. As used in this section, "consumer checking accounts" means
18 accounts established by natural persons primarily for personal, family
19 or household purposes.
20 § 2. This act shall take effect on the first of January next succeed-
21 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.
LBD01546-01-9
