Senate Bill S3240

2013-2014 Legislative Session

Prohibits a service charge or minimum balance requirement for attorney trust accounts

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks 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

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2013-S3240 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §9-v, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: S6216
2015-2016: S2868
2017-2018: S2712
2019-2020: S5001
2021-2022: S5460
2023-2024: S6849

2013-S3240 (ACTIVE) - Summary

Prohibits a bank or trust company from charging a service charge or requiring a minimum balance for attorney trust or IOLA accounts that are non-interest bearing in nature; defines attorney trust account.

2013-S3240 (ACTIVE) - Sponsor Memo

2013-S3240 (ACTIVE) - Bill Text download pdf 

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

                                  3240

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sen.  PARKER -- 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 attorney trust accounts

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

  Section  1.  The banking law is amended by adding a new section 9-v to
read as follows:
  S 9-V. ATTORNEY TRUST ACCOUNTS. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW OR RULE OR REGULATION TO THE CONTRARY,  NO  BANK  OR  TRUST  COMPANY
REGULATED BY THE STATE OF NEW YORK SHALL CHARGE A SERVICE FEE OR REQUIRE
A  MINIMUM  BALANCE  ON AN ATTORNEY TRUST ACCOUNT, PROVIDED THAT NO MORE
THAN FIFTEEN  DEBIT  OR  CREDIT  TRANSACTIONS  PER  MONTH  ARE  MADE  IN
CONNECTION  WITH  SUCH ACCOUNT AND PROVIDED, FURTHER, THAT SUCH ATTORNEY
TRUST ACCOUNT IS NON-INTEREST BEARING OR IS AN IOLA (INTEREST ON  LAWYER
ACCOUNTS)  ACCOUNT.  FOR THE PURPOSES OF THIS SECTION, AN ATTORNEY TRUST
ACCOUNT SHALL MEAN A SPECIAL BANKING OR CHECKING ACCOUNT REQUIRED BY LAW
OR A RULE OF COURT FOR THE DEPOSIT OF FUNDS BELONGING TO LAW CLIENTS  OR
OTHER PERSONS IN THE PRACTICE OF LAW.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06978-01-3

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