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S00219 Summary:

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S00219 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         219--A
 
                               2011-2012 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 5, 2011
                                       ___________
 
        Introduced  by  Sens.  MAZIARZ,  BONACIC,  FLANAGAN, FUSCHILLO, JOHNSON,
          RANZENHOFER, SEWARD -- read twice and ordered printed, and when print-
          ed to be committed to the Committee on Banks  --  recommitted  to  the
          Committee on Banks in accordance with Senate Rule 6, sec. 8 -- commit-

          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee
 
        AN ACT to amend the banking law, in relation to preauthorized electronic
          fund transfers
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Section 9-s of the banking law, as added by chapter 550 of
     2  the laws of 1998 and as further amended by section  104  of  part  A  of
     3  chapter 62 of the laws of 2011, is amended to read as follows:
     4    §  9-s.  Preauthorized  electronic  fund  transfers.  1. Every banking
     5  institution which provides preauthorized electronic fund transfers  from
     6  consumer  accounts  shall, in accordance with regulations adopted by the
     7  superintendent of financial services, provide consumers with  the  right

     8  to  stop  payment  by  giving  written or oral notice within a specified
     9  period of time prior to such transfer. [Any  banking  institution  which
    10  complies  with  the  stop  payment  provisions of the federal Electronic
    11  Funds Transfer Act, as such act may be amended from time  to  time,  and
    12  any  regulations  adopted  pursuant  thereto,  shall  be deemed to be in
    13  compliance with the provisions of this section.] For  purposes  of  this
    14  section,  "banking  institution" shall mean any state or federally char-
    15  tered bank, trust company, savings bank, savings and loan association or
    16  credit union, and "consumer account" shall mean an account used primari-
    17  ly for personal, family or household purposes.
    18    2. No agreement for preauthorized electronic  fund  transfers  entered

    19  into  on  or  after January first, two thousand thirteen shall permit or
    20  require the transfer from a consumer account of any funds as  a  penalty
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01582-02-1
        S. 219--A                           2
 
     1  or  a  final payment after the consumer has given written or oral notice
     2  to stop payment to his or her financial institution.
     3    3.  Any  banking  institution  which  complies  with  the stop payment
     4  provisions of the federal Electronic Funds Transfer Act, as such act may
     5  be amended from time to time, and any regulations adopted pursuant ther-

     6  eto, shall be deemed to be in compliance with  the  provisions  of  this
     7  section.
     8    § 2. This act shall take effect immediately.