Senate Bill S7741

2015-2016 Legislative Session

Requires banks to send account notifications in certain circumstances

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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2015-S7741 (ACTIVE) - Details

See Assembly Version of this Bill:
A3224
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add ยงยง135 & 458, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: A9250
2013-2014: A785
2017-2018: S4602, A5413
2019-2020: S2807, A4023
2021-2022: S5815, A8914
2023-2024: S2769, A1478

2015-S7741 (ACTIVE) - Summary

Requires banks to send account notifications in certain circumstances.

2015-S7741 (ACTIVE) - Sponsor Memo

2015-S7741 (ACTIVE) - Bill Text download pdf

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

                                  7741

                            I N  S E N A T E

                              May 12, 2016
                               ___________

Introduced  by  Sen.  COMRIE -- 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 requiring banks to noti-
  fy customers of account overdrafts in certain circumstances

  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 135 to
read as follows:
  S 135. ACCOUNT NOTIFICATIONS. 1. WHERE  A  BANKING  INSTITUTION  UNDER
THIS ARTICLE OFFERS ITS CUSTOMERS OR DEPOSITORS OVERDRAFT PROTECTION, OR
ANY  OTHER SIMILAR SERVICE WHEREIN THE BANKING INSTITUTION CHARGES A FEE
TO PREVENT ACCOUNT PENALTIES FOR INSUFFICIENT  FUNDS,  SUCH  INSTITUTION
SHALL  NOTIFY  SUCH  CUSTOMER  OR  DEPOSITOR  WHENEVER  SUCH  SERVICE IS
EMPLOYED TO PREVENT ACCOUNT PENALTIES.
  2. A BANKING INSTITUTION SHALL IMMEDIATELY NOTIFY A CUSTOMER OR DEPOS-
ITOR OF THE INSUFFICIENCY OF  FUNDS  IN  SUCH  INDIVIDUAL'S  ACCOUNT  OR
ACCOUNTS  VIA ELECTRONIC MAIL, OR IF THE INDIVIDUAL PREFERS, THROUGH ANY
OTHER METHOD OF NOTIFICATION. SUCH NOTIFICATION  SHALL  STATE  THAT  THE
BANK'S  OVERDRAFT  SERVICE  HAS GONE INTO EFFECT AND SHALL LIST ANY FEES
AND PENALTIES ASSOCIATED WITH SUCH SERVICE.
  S 2. The banking law is amended by adding a new section 458 to read as
follows:
  S 458. ACCOUNT NOTIFICATIONS. 1. WHERE  A  BANKING  INSTITUTION  UNDER
THIS ARTICLE OFFERS ITS CUSTOMERS OR DEPOSITORS OVERDRAFT PROTECTION, OR
ANY  OTHER SIMILAR SERVICE WHEREIN THE BANKING INSTITUTION CHARGES A FEE
TO PREVENT ACCOUNT PENALTIES FOR INSUFFICIENT  FUNDS,  SUCH  INSTITUTION
SHALL  NOTIFY  SUCH  CUSTOMER  OR  DEPOSITOR  WHENEVER  SUCH  SERVICE IS
EMPLOYED TO PREVENT ACCOUNT PENALTIES.
  2. A BANKING INSTITUTION SHALL IMMEDIATELY NOTIFY A CUSTOMER OR DEPOS-
ITOR OF THE INSUFFICIENCY OF  FUNDS  IN  SUCH  INDIVIDUAL'S  ACCOUNT  OR
ACCOUNTS  VIA ELECTRONIC MAIL, OR IF THE INDIVIDUAL PREFERS, THROUGH ANY
OTHER METHOD OF NOTIFICATION. SUCH NOTIFICATION  SHALL  STATE  THAT  THE
BANK'S  OVERDRAFT  SERVICE  HAS GONE INTO EFFECT AND SHALL LIST ANY FEES
AND PENALTIES ASSOCIATED WITH SUCH SERVICE.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

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