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.
STATE OF NEW YORK
________________________________________________________________________
5212
2021-2022 Regular Sessions
IN ASSEMBLY
February 12, 2021
___________
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-y to
2 read as follows:
3 § 9-y. 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.
LBD07827-01-1
