Senate Bill S5815

2021-2022 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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2021-S5815 (ACTIVE) - Details

See Assembly Version of this Bill:
A8914
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §§135 & 458, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: A9250
2013-2014: A785
2015-2016: S7741, A3224
2017-2018: S4602, A5413
2019-2020: S2807, A4023
2023-2024: S2769, A1478

2021-S5815 (ACTIVE) - Summary

Requires banks to send account notifications in certain circumstances.

2021-S5815 (ACTIVE) - Sponsor Memo

2021-S5815 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5815
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 19, 2021
                                ___________
 
 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:
   § 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.
   § 2. The banking law is amended by adding a new section 458 to read as
 follows:
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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