S T A T E O F N E W Y O R K
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6949
2021-2022 Regular Sessions
I N S E N A T E
May 20, 2021
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Introduced by Sen. KENNEDY -- 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 establishing joint and
survivorship accounts; and repealing certain provisions of such law
relating thereto
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 675-a to
read as follows:
§ 675-A. JOINT ACCOUNTS; JOINT AND SURVIVORSHIP ACCOUNTS. 1. JOIN
ACCOUNTS. (A) WHEN A DEPOSIT OF CASH, SECURITIES, OR OTHER PROPERTY HAS
BEEN MADE OR SHALL HEREAFTER BE MADE IN OR WITH ANY BANKING ORGANIZATION
OR FOREIGN BANKING CORPORATION TRANSACTING BUSINESS IN THIS STATE, OR
SHARES SHALL HAVE BEEN ALREADY ISSUED OR SHALL BE HEREAFTER ISSUED, IN
ANY SAVINGS AND LOAN ASSOCIATION OR CREDIT UNION TRANSACTING BUSINESS IN
THIS STATE, IN THE NAME OF SUCH DEPOSITOR OR SHAREHOLDER AND ANOTHER
PERSON AND IN FORM TO BE PAID OR DELIVERED TO EITHER, OR THE SURVIVOR OF
THEM, SUCH DEPOSIT OR SHARES AND ANY ADDITIONS THERETO OR ACCRUALS THER-
EON MAY BE PAID OR DELIVERED TO EITHER DURING THE LIFETIME OF BOTH, AND
SUCH PAYMENT OR DELIVERY AND THE RECEIPT OR ACQUITTANCE OF THE ONE TO
WHOM SUCH PAYMENT OR DELIVERY IS MADE, SHALL BE A VALID AND SUFFICIENT
RELEASE AND DISCHARGE TO THE BANKING ORGANIZATION FOR ALL PAYMENTS OR
DELIVERIES MADE ON ACCOUNT OF SUCH DEPOSIT OR SHARES PRIOR TO THE
RECEIPT BY THE BANKING ORGANIZATION OF NOTICE IN WRITING SIGNED BY
EITHER ONE OF SUCH PERSONS, NOT TO PAY OR DELIVER SUCH DEPOSIT OR SHARES
AND THE ADDITIONS AND ACCRUALS THEREON IN ACCORDANCE WITH THE TERMS
THEREOF, AND AFTER RECEIPT OF ANY SUCH NOTICE, THE BANKING ORGANIZATION
MAY REQUIRE THE RECEIPT OR ACQUITTANCE OF BOTH SUCH PERSONS FOR ANY
FURTHER PAYMENTS OR DELIVERY.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, THE MAKING OF SUCH DEPOSIT OR THE ISSUANCE OF SUCH SHARES IN SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11013-02-1
S. 6949 2
FORM SHALL NOT AFFECT THE TITLE TO SUCH DEPOSIT OR SHARES, WHICH SHALL
REMAIN IN THE DEPOSITOR, AND THE DEPOSITOR SHALL NOT BE CONSIDERED TO
HAVE MADE A GIFT OF ANY PART OF THE DEPOSIT OR OF ANY ADDITIONS THERETO
OR ACCRUALS THEREON TO THE OTHER PERSON.
(C) IF AN ADDITION IS MADE TO SUCH AN ACCOUNT BY ANYONE OTHER THAN THE
DEPOSITOR, SUCH AN ADDITION AND ACCRUALS THEREON SHALL BE CONSIDERED TO
HAVE BEEN MADE BY THE DEPOSITOR.
(D) ON THE DEATH OF THE OTHER PERSON DURING THE LIFETIME OF THE DEPOS-
ITOR THE PAYMENT OR DELIVERY TO THE DEPOSITOR OF ANY OR ALL OF THE FUNDS
REMAINING IN THE ACCOUNT SHALL BE A VALID AND SUFFICIENT RELEASE TO THE
BANKING ORGANIZATION.
2. JOINT AND SURVIVORSHIP ACCOUNTS. ON THE DEATH OF THE DEPOSITOR OF
AN ACCOUNT ESTABLISHED UNDER SUBDIVISION ONE OF THIS SECTION DURING THE
LIFETIME OF THE OTHER PERSON, THE FUNDS REMAINING IN THE ACCOUNT SHALL
PASS EITHER TO THE OTHER PERSON BY RIGHT OF SURVIVORSHIP OR AS PART OF
THE DEPOSITOR'S ESTATE, IN ACCORDANCE WITH THE WRITTEN DESIGNATION OF
THE DEPOSITOR MADE UPON THE ESTABLISHMENT OF THE ACCOUNT. IF THE DEPOS-
ITOR DIES WITHOUT HAVING DESIGNATED THE DEPOSITOR'S INTENTION, THE DEPO-
SITOR SHALL BE TREATED AS HAVING DESIGNATED THE INTENTION THAT THE
REMAINING FUNDS PASS AS PART OF THE DEPOSITOR'S ESTATE. IF THE DEPOSITOR
HAS DESIGNATED THE INTENTION THAT THE REMAINING FUNDS PASS AS PART OF
THE DEPOSITOR'S ESTATE, (A) PAYMENT OR DELIVERY TO THE OTHER PERSON OF
ANY OR ALL OF THE FUNDS REMAINING IN THE ACCOUNT SHALL STILL BE A VALID
AND SUFFICIENT RELEASE TO THE BANKING ORGANIZATION IF MADE PRIOR TO THE
RECEIPT BY THE BANKING ORGANIZATION OF WRITTEN NOTICE OF THE DEPOSITOR'S
DEATH, AND (B) A BANKING ORGANIZATION WHICH, PRIOR TO SERVICE UPON IT OF
A RESTRAINING ORDER, INJUNCTION OR OTHER APPROPRIATE PROCESS FROM A
COURT OF COMPETENT JURISDICTION PROHIBITING PAYMENT, MAKES PAYMENT TO
THE EXECUTOR, ADMINISTRATOR OR OTHER QUALIFIED REPRESENTATIVE OF THE
DECEASED DEPOSITOR'S ESTATE, SHALL, TO THE EXTENT OF SUCH PAYMENT, BE
RELEASED FROM LIABILITY TO ANY PERSON CLAIMING A RIGHT TO THE FUNDS AND
THE RECEIPT OR ACQUITTANCE OF THE EXECUTOR, ADMINISTRATOR OR QUALIFIED
REPRESENTATIVE TO WHOM PAYMENT IS MADE SHALL BE A VALID AND SUFFICIENT
RELEASE AND DISCHARGE OF THE BANKING ORGANIZATION. IF THE DEPOSITOR HAS
INDICATED THE INTENTION THAT THE REMAINING FUNDS PASS TO THE OTHER
PERSON BY RIGHT OF SURVIVORSHIP, PAYMENT OR DELIVERY TO THE OTHER PERSON
OF ANY OR ALL OF THE FUNDS REMAINING IN THE ACCOUNT SHALL BE A VALID AND
SUFFICIENT RELEASE TO THE BANKING ORGANIZATION IF MADE PRIOR TO SERVICE
UPON IT OF A RESTRAINING ORDER, INJUNCTION OR OTHER APPROPRIATE PROCESS
FROM A COURT OF COMPETENT JURISDICTION PROHIBITING SUCH PAYMENT.
3. REGULATIONS OF THE SUPERINTENDENT. (A) THE SUPERINTENDENT SHALL
PROMULGATE AND MAY FROM TIME TO TIME AMEND RULES AND REGULATIONS WHICH
REQUIRE THAT THE DEPOSITOR OF A JOINT ACCOUNT UNDER THIS SECTION BE
INFORMED OF THE TERMS AND CONDITIONS OF THE ACCOUNT, INCLUDING THE
RELATIONSHIP AND CONSEQUENCES BETWEEN THE PARTIES IN THE ACCOUNT AND THE
RESPONSIBILITIES OF THE INSTITUTION WITH WHICH THE ACCOUNT IS ESTAB-
LISHED.
(B) THIS SUBDIVISION OR ANY RULE OR REGULATION THEREUNDER SHALL NOT BE
DEEMED OR CONSTRUED AS INCREASING OR DIMINISHING THE RIGHTS OR LIABILITY
OF ANY PERSON OR ENTITY.
4. APPLICATION. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ACCOUNTS
ESTABLISHED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
§ 2. Section 675 of the banking law is amended by adding a new subdi-
vision (d) to read as follows:
(D) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE
PROVISIONS OF THIS SECTION SHALL APPLY ONLY TO ACCOUNTS OPENED PRIOR TO
S. 6949 3
THE EFFECTIVE DATE OF SECTION SIX HUNDRED SEVENTY-FIVE-A OF THIS ARTI-
CLE.
§ 3. Section 678 of the banking law is REPEALED.
§ 4. Section 679 of the banking law, as added by chapter 432 of the
laws of 2018, is renumbered section 678 and is amended to read as
follows:
§ 678. Public awareness; banking services. The superintendent shall
conduct a public awareness campaign to educate consumers on different
banking services available in the state, particularly those that can
assist vulnerable adults in financial planning, including, but not
limited to, citizens of an advanced age, individuals with cognitive or
developmental disabilities, or those who have health or physical issues
that impair their financial independence. The public awareness campaign
shall include information regarding the differences between types of
accounts, including joint [and convenience] accounts AND JOINT AND
SURVIVORSHIP ACCOUNTS, as well as the rights and responsibilities gener-
ally recognized for each. The public awareness campaign shall also
include, but not be limited to, answers to general concerns and ques-
tions that individuals may have with respect to the establishment of
certain types of accounts and services, as well as information and
recommendations for obtaining more information.
§ 5. This act shall take effect on the thirtieth day after it shall
have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.
