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S01465 Summary:

S01465 Actions:

S01465 Committee Votes:

S01465 Floor Votes:

S01465 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1465
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                    January 12, 2021
                                       ___________
 
        Introduced  by  Sen. BRESLIN -- 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 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-y  to
     2  read as follows:
     3    §  9-y.  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.
                                                                   LBD01720-01-1