What's happening
This bill requires banks to process checks in the order received or from smallest to largest and disclose their policy to consumers.
Why it matters
Helps consumers avoid unnecessary overdraft fees. By requiring banks to process checks in the order received or from smallest to largest, the bill reduces the chance that a single large check triggers multiple overdraft fees, which often happens when banks process the largest checks first.
Protects vulnerable account holders. Prioritizing smaller checks can ensure that essential, everyday payments (like groceries or utility bills) are more likely to clear, even if there are insufficient funds to cover larger checks, helping low-balance consumers avoid disruptions to critical services.
Enhances transparency and consumer choice. Mandating clear, written disclosure of check-processing policies at account opening and before any policy changes helps consumers make informed decisions when choosing or managing bank accounts, and prevents surprise changes that could negatively impact their finances.
Establishes regulatory oversight. By directing the superintendent to set rules and regulations, the bill ensures ongoing oversight and standardized enforcement, aiming to protect consumers across all banks operating in New York.
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Who cares
Headline styles
Pay Checks in Order Received
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Enacting clause stricken
- Committed to codes
- Ordered to third reading cal.88
- Advanced to third reading cal.385
- 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 Assembly Committee · Codes · Sponsor Neil D. Breslin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1931
2019-2020 Regular Sessions
IN ASSEMBLY
January 18, 2019
Introduced by M. of A. ZEBROWSKI, WEPRIN -- read once and referred to the Committee on Banks
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.
LBD01546-01-9
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.