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- Referred to banks
- Referred to banks
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Banks Must Cash Checks
In Assembly Committee · Banks · Sponsor Kenneth Zebrowski
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2462
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. HAMILTON -- read twice and ordered printed, and when printed to be committed 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.
Sponsor's memo
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.10616 of 2005-2006. S. 6235 of 2015-16 Legislative Session
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.