S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4607--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 24, 2009
                               ___________

Introduced  by Sens. ONORATO, BRESLIN, DILAN, HASSELL-THOMPSON, C. JOHN-
  SON, KRUEGER, PARKER, PERKINS, SAMPSON, SCHNEIDERMAN, THOMPSON -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Banks  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the banking law, in relation to requiring the disclosure
  of the rights and liabilities of joint depositors

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Legislative findings. The legislature hereby finds that
many consumers fail to fully comprehend the rights and liabilities  they
assume  when  they  establish a bank account as joint tenants.  For that
reason, the legislature declares that the state banking department shall
promulgate rules and regulations to provide  for  the  full  and  public
disclosure by banking institutions of such rights and liabilities at the
opening of such an account.
  S  2.  Section  14-c of the banking law, as added by chapter 19 of the
laws of 1978 and the opening paragraph of subdivision 1  as  amended  by
chapter 9 of the laws of 1996, is amended to read as follows:
  S  14-c.  Power of the banking board to prescribe criteria for disclo-
sure of information on savings, CHECKING, and time  accounts.    1.  The
banking board shall promulgate rules and regulations with respect to the
disclosure of information on savings, CHECKING, and time accounts by all
banking organizations and out-of-state state banks authorized to operate
and  maintain  branches pursuant to article five-C of this chapter. Such
rules and regulations shall set forth guidelines for, but not be limited
to the following:
  (a) disclosure of the annual rate of simple  interest;  the  effective
annual yield; the formula used in calculating interest; the frequency of
compounding and crediting of interest; date on which a deposit begins to
earn  interest;  any  delay  in  crediting a deposited instrument; grace

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03641-02-9
              

S. 4607--A                          2

periods for deposits and withdrawals; the minimum  balance  required  to
earn  interest;  the method of determining the balance on which interest
is paid; the minimum length of time funds must remain on deposit to earn
interest;  any  fees levied on inactive accounts; any charges, penalties
or other conditions imposed upon  withdrawals;  any  penalties  for  the
closing of an account before a specific date; THE RIGHTS AND LIABILITIES
OF  DEPOSITORS  OR  SHAREHOLDERS OF ACCOUNTS HELD JOINTLY; and any other
fees, charges or penalties.
  (b) form, content and distribution of information PROVIDED, THAT  WITH
RESPECT  TO  ACCOUNTS  HELD JOINTLY, SUCH INFORMATION SHALL INCLUDE, BUT
NOT BE LIMITED TO, A ONE PAGE FORM IN BOLD PRINT DISTRIBUTED  TO  DEPOS-
ITORS  OR  SHAREHOLDERS  WHEN  SUCH  AN ACCOUNT IS OPENED, DETAILING THE
RIGHTS AND LIABILITIES OF SUCH DEPOSITORS OR SHAREHOLDERS.
  2.  The banking board may alter or  amend  rules  and  regulations  or
promulgate  additional  rules  and regulations as it deems necessary and
proper to effectuate the provisions of subdivision one OF THIS SECTION.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided, however, that  the  banking  board
shall immediately promulgate such rules and regulations as are necessary
so  that  the  provisions  of  this act may be fully implemented on such
date.