NY State Senate Bill 2017-S2797A

Senate Bill S2797A

2017-2018 Legislative Session

Provides that every banking institution maintaining checking accounts for customers shall pay checks in the order received within account balance

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 25, 2018	print number 2797a
Apr 25, 2018	amend and recommit to banks
Jan 03, 2018	referred to banks
Jan 17, 2017	referred to banks

Bill Amendments

Original

A (Active)

2017-S2797 - Details

See Assembly Version of this Bill:: A5744
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S8146, A6685
2011-2012: S1195, A3558
2013-2014: S1156, A3511
2015-2016: S794, A4981
2019-2020: S982, A1931, A9677
2021-2022: S1465, A1073

2017-S2797 - Summary

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.

2017-S2797 - Sponsor Memo

2017-S2797 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2797
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2017
                                ___________
 
 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:

   Section 1. The banking law is amended by adding a new section  9-x  to
 read as follows:
   §  9-X.  BANKING  INSTITUTIONS TO PAY CHECKS DRAWN THEREIN IN ORDER OF
 PRESENTATION.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO  THE
 CONTRARY, EVERY BANKING INSTITUTION WHICH PROVIDES CHECKING ACCOUNTS FOR
 ITS CUSTOMERS SHALL, IN PAYING SUCH CHECKS AS ARE PRESENTED FOR PAYMENT,
 PAY  THE CHECKS IN THE ORDER WHEREIN THEY ARE RECEIVED; PROVIDED, HOWEV-
 ER, IF A CHECK IS DISHONORED FOR INSUFFICIENT FUNDS AND THEREAFTER SMAL-
 LER CHECKS WHICH COULD BE PAID ARE RECEIVED, THE SMALLER CHECKS SHALL BE
 HONORED WITHIN AMOUNTS ON DEPOSIT IN THE SUBJECT ACCOUNT.
   § 2. This act shall take effect on the first of January next  succeed-
 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.
                                                            LBD07483-01-7

2017-S2797A (ACTIVE) - Details

See Assembly Version of this Bill:: A5744
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S8146, A6685
2011-2012: S1195, A3558
2013-2014: S1156, A3511
2015-2016: S794, A4981
2019-2020: S982, A1931, A9677
2021-2022: S1465, A1073

2017-S2797A (ACTIVE) - Summary

2017-S2797A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2797A

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the banking law, in relation to the order in which a
payor bank shall pay checks

 
PURPOSE OR GENERAL IDEA OF BILL:

Provides that every banking institution maintaining checking accounts
for customers shall pay checks in the order received within account
balances.

 
SUMMARY OF SPECIFIC PROVISIONS:

A new section 9-X is added to the banking law to require that every
banking institution maintaining checking accounts for customers shall
pay checks in the order received; provided, however, that if a check is
dishonored for insufficient funds and thereafter smaller checks which
could be paid are received, the smaller checks shall be honored within

the amounts on deposit in the subject account.

 
JUSTIFICATION:

Under current law if a check is presented to a banking institution for a
customer maintaining a checking account in that banking institution
which exceeds the funds available in the account the check is dishonored
and all subsequent checks received by that bank. This occurs, even if
there is sufficient funds in the account to honor one or more of the
subsequent checks. This would require the banks to honor subsequent
checks if the customer's account has sufficient funds to cover those
checks.

 
PRIOR LEGISLATIVE HISTORY:

2015-16: S.794A/A.4981A Print number 794A/ Advanced to third reading
cal. 540
2013-14: S.1156 Remained in the Senate Committee on Banks
2011-12: S.1195 Remained in the Senate Committee on Banks
2009-10: S.8146/A.6685 Remained in the Senate Committee on Banks/ Passed
the Assembly

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

2017-S2797A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2797--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2017
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks  --  recommitted  to
   the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 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:
 
   Section  1.  The banking law is amended by adding a new section 9-x to
 read as follows:
   § 9-X. BANKING INSTITUTIONS TO PAY CHECKS DRAWN THEREIN  IN  ORDER  OF
 PRESENTATION.  1.  NOTWITHSTANDING  ANY  LAW,  RULE OR REGULATION TO THE
 CONTRARY, EVERY BANKING  INSTITUTION  THAT  PROVIDES  CONSUMER  CHECKING
 ACCOUNTS  SHALL EITHER PAY CHECKS IN THE ORDER WHEREIN THEY ARE RECEIVED
 OR PAY CHECKS FROM SMALLEST TO LARGEST DOLLAR AMOUNT FOR  EACH  BUSINESS
 DAY'S TRANSACTIONS.
   2.  IF  A  CHECK  IS  DISHONORED FOR INSUFFICIENT FUNDS AND THEREAFTER
 SMALLER CHECKS WHICH COULD BE PAID  ARE  RECEIVED,  THE  SMALLER  CHECKS
 SHALL BE HONORED WITHIN AMOUNTS ON DEPOSIT IN THE SUBJECT ACCOUNT.
   3.  THE BANKING INSTITUTION SHALL DISCLOSE TO CONSUMERS IN WRITING THE
 ORDER IN WHICH  CHECKS  ARE  DRAWN.  THE  WRITTEN  DISCLOSURE  SHALL  BE
 PROVIDED  TO THE CONSUMER AT THE TIME THE ACCOUNT IS OPENED AND PRIOR TO
 ANY CHANGE IN SUCH POLICY. THE SUPERINTENDENT SHALL PROMULGATE RULES AND
 REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION.
   4. AS  USED  IN  THIS  SECTION,  "CONSUMER  CHECKING  ACCOUNTS"  MEANS
 ACCOUNTS  ESTABLISHED  BY NATURAL PERSONS PRIMARILY FOR PERSONAL, FAMILY
 OR HOUSEHOLD PURPOSES.
   § 2. This act shall take effect on the first of January next  succeed-
 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.
                                                            LBD07483-03-8

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