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History
- Referred to banks
Companion bill
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Provides that every banking institution maintaining checking accounts for customers shall pay checks in the order received within account balance
In Senate Committee · Banks · Sponsor Joel Miller
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S8146
Title of bill
An act to amend the banking law, in relation to the order in which a payor bank shall pay checks
Purpose or general idea of bill
Provides that every banking institution maintaining checking accounts for customers shall pay checks in the order received within account balances.
Summary of specific provisions
A new section 9-V is added to the banking law to require that every banking institution maintaining checking accounts for customers shall pay checks in the order received; provided, however, that if a check is dishonored for insufficient funds and thereafter smaller checks which could be paid are received, the smaller checks shall be honored within the amounts on deposit in the subject account.
Justification
Under current law if a check is presented to a banking institution for a customer maintaining a checking account in that banking institution which exceeds the funds available in the account the check is dishonored and all subsequent checks received by that bank. This occurs, even if there is sufficient funds in the account to honor one or more of the subsequent checks. This would require the banks to honor subsequent checks if the customer's account has sufficient funds to cover those checks.
Prior legislative history
2001-02: A.5529-Remained in the Assembly Committee on Banks 2003-04: A.3148-Remained in the Assembly Committee on Banks 2005-06: A.4599-Remained in the Assembly committee on Banks 2007-08: A.5974-Remained in the Assembly Committee on Banks
Fiscal implications
None.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.