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
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8146
IN SENATE
June 11, 2010
___________
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-v to
2 read as follows:
3 § 9-v. Banking institutions to pay checks drawn therein in order of
4 presentation. Notwithstanding any other law, rule or regulation to the
5 contrary, every banking institution which provides checking accounts for
6 its customers shall, in paying such checks as are presented for payment,
7 pay the checks in the order wherein they are received; provided, howev-
8 er, if a check is dishonored for insufficient funds and thereafter smal-
9 ler checks which could be paid are received, the smaller checks shall be
10 honored within amounts on deposit in the subject account.
11 § 2. This act shall take effect on the first of January next succeed-
12 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.
LBD09693-01-9
