Bill Text: NY A05031 | 2025-2026 | General Assembly | Introduced

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Bill Title: Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced) 2025-02-11 - referred to banks [A05031 Detail]

Download: New_York-2025-A05031-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5031

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    February 11, 2025
                                       ___________

        Introduced  by  M. of A. JACOBSON, LUCAS, HYNDMAN, TAYLOR, SANTABARBARA,
          GLICK,  DILAN,  SAYEGH,  SEPTIMO,  DAVILA,  STECK,   REYES,   BURDICK,
          SEAWRIGHT -- read once and referred to the Committee on Banks

        AN  ACT  to  amend the banking law, in relation to establishing criteria
          for the closure of banking accounts in the state of New York

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The banking law is amended by adding a new section 9-ii to
     2  read as follows:
     3    § 9-ii. Closure of accounts. All  banking  organizations  and  out-of-
     4  state  state  banks authorized to operate and maintain branches pursuant
     5  to article five-C of this chapter when closing the account of a customer
     6  shall:
     7    (a) provide sixty days' notice that  such  account  is  being  closed,
     8  whether  for  personal  or business use, and provide the reason for such
     9  closure; provided that nothing in this section  shall  be  construed  to
    10  preempt  any  federal law that prohibits disclosure of the reason for an
    11  account closure; and
    12    (b) return any remaining funds from such  account  within  sixty  days
    13  after the closure of such account to the owner.
    14    § 2. This act shall take effect immediately.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03161-01-5