Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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---|---|
Jan 06, 2010 |
referred to judiciary |
Jan 20, 2009 |
referred to judiciary |
Assembly Bill A2577
2009-2010 Legislative Session
Sponsored By
WEINSTEIN
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2009-A2577 (ACTIVE) - Details
2009-A2577 (ACTIVE) - Sponsor Memo
BILL NUMBER:A2577 REPLACEMENT 5/21/10 TITLE OF BILL: An act to amend the real property law and the state finance law, in relation to brokers fiduciary funds PURPOSE OR GENERAL IDEA OF BILL: To direct real estate brokers to hold escrowed monies in certain specialized accounts. SUMMARY OF SPECIFIC PROVISIONS: This bill would direct real estate brokers to hold all escrowed monies held for the benefits of others in specialized Interest On Brokers Accounts (IOBA), patterned after Interest On Lawyers' Accounts (IOLA). All interest earned from MBA accounts would flow to the benefit of civil legal service funding. JUSTIFICATION: In 1993 Judiciary Law Sec. 497 was enacted, which provided for attorney's escrow monies to be held in specialized IOLA accounts. The interest proceeds from these accounts were then used to fund much needed civil legal services. It is submitted that the extension of these accounts for the benefit of civil legal services would be a sensible and logical step which would likewise benefits those will civil legal service needs, but without the resources to pay for same. This bill extends the similar guidelines to financial institutions and brokers applicable to said funds as had been made applicable to attorneys pursuant to the aforementioned IOLA legislation.
2009-A2577 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2577 2009-2010 Regular Sessions I N A S S E M B L Y January 20, 2009 ___________ Introduced by M. of A. WEINSTEIN, JOHN -- Multi-Sponsored by -- M. of A. BRENNAN, CHRISTENSEN, CLARK, COLTON, COOK, DESTITO, DINOWITZ, ESPAIL- LAT, GLICK, GREENE, JACOBS, MAGNARELLI, MARKEY, McENENY, MILLMAN, O'DONNELL, PRETLOW, TITUS -- read once and referred to the Committee on Judiciary AN ACT to amend the real property law and the state finance law, in relation to brokers fiduciary funds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property law is amended by adding a new section 443-b to read as follows: S 443-B. BROKERS FIDUCIARY FUNDS; INTEREST-BEARING ACCOUNTS. 1. AS USED IN THIS SECTION: (A) "INTEREST ON BROKER ACCOUNT" OR "IOBA" MEANS AN UNSEGREGATED INTEREST-BEARING DEPOSIT ACCOUNT WITH A BANKING INSTITUTION FOR THE DEPOSIT BY A BROKER OF QUALIFIED FUNDS. (B) "QUALIFIED FUNDS" MEANS MONEYS RECEIVED BY A BROKER IN A FIDUCIARY CAPACITY FROM A CLIENT OR BENEFICIAL OWNER AND WHICH ARE NOT PLACED IN AN INTEREST-BEARING ACCOUNT AT THE REQUEST OF AND FOR THE BENEFIT OF THE CLIENT OR BENEFICIAL OWNER. (C) "FUNDS RECEIVED IN A FIDUCIARY CAPACITY" MEANS FUNDS RECEIVED BY A BROKER FROM A CLIENT OR BENEFICIAL OWNER IN THE COURSE OF BUSINESS, INCLUDING BUT NOT LIMITED TO, FUNDS RECEIVED IN AN ESCROW CAPACITY. (D) "BANKING INSTITUTION" MEANS A BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION OR FOREIGN BANKING CORPO- RATION WHETHER INCORPORATED, CHARTERED, ORGANIZED OR LICENSED UNDER THE LAWS OF THIS STATE OR THE UNITED STATES, PROVIDED THAT SUCH BANKING INSTITUTION CONDUCTS ITS PRINCIPAL BANKING BUSINESS IN THIS STATE. 2. (A) UNLESS A CLIENT OR BENEFICIAL OWNER SPECIFICALLY REQUESTS OTHERWISE, OR A CONTRACT PROVIDES OTHERWISE, A BROKER WHO RECEIVES EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01546-01-9
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