Relates to establishing limitations on bank accounts after such accounts have been closed including opening or re-opening such account, requesting a deposit or withdrawal or assessing certain fees.
STATE OF NEW YORK
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134
2021-2022 Regular Sessions
IN SENATE(Prefiled)
January 6, 2021
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Introduced by Sens. MAYER, JACKSON, SALAZAR -- read twice and ordered
printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to establishing limitations
on bank accounts after such account has been closed
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 9-i of the banking law, as added by chapter 646 of
2 the laws of 1985, is amended to read as follows:
3 § 9-i. Close-out fees prohibited in certain cases; post-closing limi-
4 tations. 1. No banking institution, as that term is defined in section
5 nine-f of this [chapter] article, shall charge its customers a fee for
6 the withdrawal of all funds from any account resulting in the closing of
7 such account provided that such account was opened for a period of at
8 least one hundred eighty consecutive days prior to its closing.
9 2. No banking institution, as that term is defined in section nine-f
10 of this article, after the date on which the customer is informed that
11 an account shall be closed shall:
12 (a) honor any request for a deposit or withdrawal with respect to such
13 account;
14 (b) keep open or re-open such account; or
15 (c) charge any customer or former customer any fee with respect to any
16 such account, provided that the foregoing shall not prevent the banking
17 institution from recovering from such customer any amounts necessary to
18 satisfy a negative balance that existed at the time the account was
19 closed.
20 § 2. This act shall take effect one year after it shall have become a
21 law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02664-01-1
