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History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires brokers who receive monies in a fiduciary capacity to deposit such monies in an interest on broker account
In Senate Committee · Judiciary · Sponsor John L. Sampson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A2577 REPLACEMENT 5/21/10
Title of bill
An act to amend the real property law and the state finance law, in relation to brokers fiduciary funds
Purpose or general idea of bill
To direct real estate brokers to hold escrowed monies in certain specialized accounts.
Summary of specific provisions
This bill would direct real estate brokers to hold all escrowed monies held for the benefits of others in specialized Interest On Brokers Accounts (IOBA), patterned after Interest On Lawyers' Accounts (IOLA). All interest earned from MBA accounts would flow to the benefit of civil legal service funding.
Justification
In 1993 Judiciary Law Sec. 497 was enacted, which provided for attorney's escrow monies to be held in specialized IOLA accounts. The interest proceeds from these accounts were then used to fund much needed civil legal services. It is submitted that the extension of these accounts for the benefit of civil legal services would be a sensible and logical step which would likewise benefits those will civil legal service needs, but without the resources to pay for same.
This bill extends the similar guidelines to financial institutions and brokers applicable to said funds as had been made applicable to attorneys pursuant to the aforementioned IOLA legislation.
Prior legislative history
2009: A.2577/S.2974 - A. Judi/S. Judi 2007-08: A.2992- Passed Assembly 2006: A.11662- Passed Assembly
Fiscal implications for state and local governments
None.
Effective date
Immediately, however, Section 1 of the bill shall not take effect until the Secretary of State, the board of trustees of the IOLA fund, and the Internal Revenue Service shall have provided appropriate certifications as to the nontaxable nature of interest accrued in such accounts.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.