 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6693
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 15, 2019
                                       ___________
 
        Introduced by M. of A. CRESPO, RODRIGUEZ, ORTIZ, JAFFEE, ABBATE, RIVERA,
          D'URSO  --  Multi-Sponsored by -- M. of A. CAHILL, LENTOL -- read once
          and referred to the Committee on Banks
 
        AN ACT to amend the banking law, in relation to conduit services
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 2 of section 366 of the banking law, as amended
     2  by  chapter  49  of the laws of 1961 and as renumbered by chapter 132 of
     3  the laws of 1969, is amended and a new subdivision 4 is added to read as
     4  follows:
     5    2. The term "licensee" means  a  licensed  casher  of  checks,  drafts
     6  and/or money orders, and conduit services.
     7    4.  The  term  "conduit  services" means account access services, bill
     8  payment services and assistance in preparation and submission  of  forms
     9  to  be processed by the collaborating financial institution permitted to
    10  be offered by a licensee under this article to its customers in  collab-
    11  oration with a state or federally chartered bank, trust company, savings
    12  bank,  savings  and loan association or credit union provided there is a
    13  written agreement between the parties  approved  by  the  superintendent
    14  setting  forth  the  exact nature of the services to be rendered and the
    15  compensation for same including the person  or  entity  responsible  for
    16  such  compensation  subject  to the oversight and approval of the super-
    17  intendent. The term "conduit services" does  not  include  any  services
    18  which exceed prevailing usury provisions under any New York state law.
    19    §  2.  This  act shall take effect on the thirtieth day after it shall
    20  have become a law.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10585-01-9
Relates to conduit services

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