What's happening
This bill prohibits New York banks from charging service fees or requiring minimum balances on certain attorney trust accounts.
Why it matters
Reduces financial barriers for attorneys managing client funds. by preventing banks from charging fees or imposing minimum balance requirements on qualifying trust accounts, thus protecting the integrity of money held for clients.
Supports access to legal services. by making it easier, especially for small law firms and solo practitioners, to maintain required trust accounts without incurring extra banking costs.
Encourages compliance with trust account rules. by removing a common source of administrative hassle and potential ethical pitfalls related to account maintenance, which could otherwise jeopardize attorneys’ ability to properly safeguard client funds.
Protects low-activity and public-benefit accounts. (such as IOLA accounts that help fund legal aid) from erosion by fees, ensuring more resources remain available for clients and for programs serving people who can’t afford legal representation.
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Who cares
Headline styles
Ban Bank Fees for Trusts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Prohibits a service charge or minimum balance requirement for attorney trust accounts
In Senate Committee · Banks · Sponsor Kevin S. Parker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3229
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. WALKER -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to attorney trust accounts
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. Attorney trust accounts. Notwithstanding any other provision of law or rule or regulation to the contrary, no bank or trust company regulated by the state of New York shall charge a service fee or require a minimum balance on an attorney trust account, provided that no more than fifteen debit or credit transactions per month are made in connection with such account and provided, further, that such attorney trust account is non-interest bearing or is an IOLA (interest on lawyer accounts) account. For the purposes of this section, an attorney trust account shall mean a special banking or checking account required by law or a rule of court for the deposit of funds belonging to law clients or other persons in the practice of law.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05951-01-9
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.