Provides that a banking institution must cash checks drawn on said institution, if payee presents two forms of valid identification

BILL NUMBER:A9200

Title of bill

An act to amend the banking law, in relation to check cashing policies

Purpose of the bill

This bill provides that a banking institution must cash checks drawn on said institution, if payee presents two forms of valid identification

Summary of provisions

Section 1 of the bill relates to the cashing of checks where no bank shall refuse to cash checks drawn on accounts at such institution if two forms of valid identification are present. Section of the bill provides that if the bank refuses to cash check in the absence of criminal activity where two valid forms of identification are shown with a signature or mark, then the bank shall be subject of a civil fine between $1,000 and $5,000 for each violation.

Justification

Unfortunately, many New Yorkers are in a position where they either live paycheck to paycheck or need cash to pay their bills and can't wait for checks to clear. This bill protects these hardworking New Yorkers by mandating that a bank cash a check drawn upon a solvent account in that bank. In order to protect against fraud the banks are permitted to require two forms of identification and a signature or mark.

Prior legislative history

A.8943 of 2007-2008, A.106I6 of 2005-2006

Fiscal implications for state

None.

Effective date

This act shall take effect on the thirtieth day after it shall have become a law.