Assembly Bill A5212

2021-2022 Legislative Session

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

download bill text pdf

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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

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2021-A5212 (ACTIVE) - Details

See Senate Version of this Bill:
S5460
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add §9-y, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: S6216
2013-2014: S3240
2015-2016: A6794, S2868
2017-2018: A6253, S2712
2019-2020: A3229, S5001
2023-2024: A2149, S6849

2021-A5212 (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.

2021-A5212 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5212
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2021
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred 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-y  to
 read as follows:
   § 9-Y. 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.
   § 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.
                                                            LBD07827-01-1

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