What's happening
This bill requires New York banks to cash checks of $500 or less for payees with valid ID, unless criminal activity is suspected.
Why it matters
Expands financial access for unbanked or underbanked individuals. , making it easier for people who do not have their own bank accounts to cash checks, such as payroll or government checks, especially in communities where access to check-cashing services is limited or costly.
Limits banks’ discretion to deny check cashing. , reducing the risk that individuals are unfairly refused service when presenting a properly endorsed check and valid ID, except in cases where criminal activity is suspected—potentially addressing issues of discrimination or arbitrary denial.
Creates a legal obligation for banks with penalties for non-compliance. , meaning banks could face consequences for refusing to cash eligible checks without a clear, lawful reason, which may strengthen consumer protections and hold financial institutions more accountable.
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Who cares
Headline styles
Banks Must Cash Checks
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to banks
- Referred to banks
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.
Provides that a banking institution must cash checks drawn on said institution, if payee presents a form of valid identification
In Senate Committee · Banks · Sponsor Jesse Hamilton
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1686
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to check cashing policies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 9-x to read as follows:
§ 9-x. Cashing of certain checks. 1. No banking institution as such term is defined in section nine-f of this article shall, refuse to cash checks, in the amount of five hundred dollars or less, drawn on accounts in such institution or a branch as long as there are sufficient funds within the account on which the check is drawn. Such institution may require, as a condition for cashing such check, that the payee present a valid government-issued photo identification card.
2. If a person presents a form of identification, as provided in subdivision one of this section, and a signature or mark, and the institution refuses to cash the check in the absence of criminal activity, such institution shall be guilty of a violation of this section.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00726-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.