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

Title of bill

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

Purpose or general idea of bill

This bill would provide that a banking institution must cash checks drawn on said institution, if payee presents a valid government-issued identification card.

Summary of specific provisions

Section 1 of the bill relates to the cashing of checks where no bank shall refuse to cash checks, in the amount of five hundred dollars or less, drawn on accounts at such institution if a valid government-issued identification is provided.

Section 2 of the bill provides that if the bank refuses to cash the check in the absence of criminal activity where one form of valid photo identification or valid government issued identification are shown with a signature or mark, then the bank would be in 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 one form of photo identification or a valid government issues identification card and a signature or mark.

Prior legislative history

A.1206 of 2013-2014, A.2208B of 2011-12, A.2206 of 2011-10, A.9200 of 2009-10, A.8943 of 2007-2008, A.10616 of 2005-2006.

Fiscal implications for state and local governments

None to the State.

Effective date

This act shall take effect on the ninetieth day after is shall have become law.