What's happening
This bill requires banks to process consumer checks in the order received or from smallest to largest, with written disclosure to customers.
Why it matters
Reduces potential overdraft and bounced check fees. By requiring banks to process checks in the order received or from smallest to largest, the bill limits a common practice where larger checks are cleared first, which can trigger multiple smaller checks to bounce, resulting in more fees for consumers.
Improves transparency for account holders. The bill mandates clear, written disclosure to consumers about the bank’s check processing order at account opening and before any future policy changes, enabling better financial planning and fewer surprises.
Helps protect vulnerable consumers. The focus on "consumer checking accounts" (used for personal, family, or household purposes) ensures that everyday individuals—not businesses—benefit from fairer and more predictable handling of their funds.
Limits banks’ discretion in check processing. By standardizing the options banks can use to process checks and requiring regulatory oversight, the bill curtails practices that may prioritize bank revenue over customer interests, promoting fairer treatment for account holders.
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Who cares
Headline styles
Banks Must Pay Checks Orderly
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Amended on third reading 5744a
- Ordered to third reading cal.405
- Returned to assembly
- Died in senate
- Referred to banks
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.147
- Reported
- Reported referred to codes
- 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.
Banks Must Pay Checks Sequentially
In Senate Committee · Banks · Sponsor Neil D. Breslin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5744--A Cal. No. 405
2017-2018 Regular Sessions
IN ASSEMBLY
February 15, 2017
Introduced by M. of A. ZEBROWSKI, WEPRIN -- read once and referred to the Committee on Banks -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading
AN ACT to amend the banking law, in relation to the order in which a payor bank shall pay checks
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. Banking institutions to pay checks drawn therein in order of presentation. 1. Notwithstanding any law, rule or regulation to the contrary, every banking institution that provides consumer checking accounts shall either pay checks in the order wherein they are received or pay checks from smallest to largest dollar amount for each business day's transactions.
2. 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 amounts on deposit in the subject account.
3. The banking institution shall disclose to consumers in writing the order in which checks are drawn. The written disclosure shall be provided to the consumer at the time the account is opened and prior to any change in such policy. The superintendent shall promulgate rules and regulations necessary for the implementation of this section.
4. As used in this section, "consumer checking accounts" means accounts established by natural persons primarily for personal, family or household purposes.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07483-02-8
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.