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No co-sponsors yet.
History
- Referred to banks
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6216
Title of bill
An act to amend the banking law, in relation to attorney trust accounts
Purpose/summary of provisions
This bill would add new section 9-v to the Banking Law to provide that no bank or trust company regulated by the State of New York shall charge a service fee or require a minimum balance on an attorney trust account, provided that such account is required by law and that no more than fifteen debit or credit transactions per month are made in connection with such account and further provided that such account is non-interest bearing. This bill would also define 'attorney trust account' as a special bank or checking account required by a rule of court for deposit of funds belonging to legal clients or other persons in the practice of law.
Justification
An attorney in possession of any asset or sum of money belonging to a client is a fiduciary and must not commingle client funds with his or her own funds or personal or business accounts. Furthermore, an attorney must maintain in a bank or trust company within the State of New York in his or her own name, or in the name of the firm of attorneys of which he or she is a member, a special account independent from his or her personal accounts. In many areas of the state, banks require minimum deposits or service fees for the maintenance of these accounts. Such requirements can be financially burdensome to the small practicing attorney who handles only a few cases which would require the collection and deposit of clients' funds. This bill would ameliorate this situation by providing that no bank or trust company regulated by New York State shall charge a service fee or require a minimum balance on an attorney trust account provided that such account is required by law and that no more than fifteen debit or credit transactions per month are made in connection with such account.
Fiscal implications
None.
Effective date
This act shall take effect on the thirtieth day after 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.