NY State Senate Bill 2015-S2868A

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 27, 2016	print number 2868a
Jan 27, 2016	amend and recommit to banks
Jan 06, 2016	referred to banks
Jan 29, 2015	referred to banks

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S2868 - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6216
2013-2014: S3240
2017-2018: S2712
2019-2020: S5001
2021-2022: S5460
2023-2024: S6849

2015-S2868 - Summary

Prohibits a bank or trust company from charging a service charge or requiring a minimum balance for attorney trust or IOLA accounts that are non-interest bearing in nature; defines attorney trust account.

2015-S2868 - Sponsor Memo

                                BILL NUMBER:S2868

TITLE OF BILL:

An act to amend the banking law, in relation to attorney trust
accounts

PURPOSE SUMMARY OF PROVISIONS:

This bill would add new section 9-w to the Banking Law to provide that
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 such account is required by law and that no
more than fifteen debit or credit transactions per month are made in
connection with such account and further provided that such account is
non-interest bearing. This bill would also define 'attorney trust
account' as a special bank or checking account required by a rule of
court for deposit of funds belonging to legal clients or other persons
in the practice of law.

JUSTIFICATION:

An attorney in possession of any asset or sum of money belonging to a
client is a fiduciary and must not commingle client funds with his or
her own funds or personal or business accounts.  Furthermore, an
attorney must maintain in a bank or trust company within the State of

New York in his or her own name, or in the name of the firm of
attorneys of which he or she is a member, a special account
independent from his or her personal accounts.

In many areas of the state, banks require minimum deposits or service
fees for the maintenance of these accounts. Such requirements can be
financially burdensome to the small practicing attorney who handles
only a few cases which would require the collection and deposit of
clients' funds.

This bill would ameliorate this situation by providing that no bank or
trust company regulated by New York State shall charge a service fee
or require a minimum balance on an attorney trust account provided
that such account is required by law and that no more than fifteen
debit or credit transactions per month are made in connection with
such account.

PRIOR LEGISLATIVE HISTORY:

2013-14: S3240 - Referred to Banks

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the thirtieth day after it shall have
become a law.

2015-S2868 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2868

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 29, 2015
                               ___________

Introduced  by  Sen.  PARKER -- 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 attorney trust accounts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The banking law is amended by adding a new section 9-w to
read as follows:
  S 9-W. 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.
  S  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.
                                                           LBD06543-01-5

co-Sponsors

2015-S2868A (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6216
2013-2014: S3240
2017-2018: S2712
2019-2020: S5001
2021-2022: S5460
2023-2024: S6849

2015-S2868A (ACTIVE) - Summary

2015-S2868A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2868A

 TITLE OF BILL :

An act to amend the banking law, in relation to attorney trust
accounts

 PURPOSE SUMMARY OF PROVISIONS :

This bill would add new section 9-x to the Banking Law to provide that
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 such account is required by law and that no
more than fifteen debit or credit transactions per month are made in
connection with such account and further provided that such account is
non-interest bearing. This bill would also define 'attorney trust
account' as a special bank or checking account required by a rule of
court for deposit of funds belonging to legal clients or other persons
in the practice of law.

 JUSTIFICATION :

An attorney in possession of any asset or sum of money belonging to a
client is a fiduciary and must not commingle client funds with his or
her own funds or personal or business accounts. Furthermore, an
attorney must maintain in a bank or trust company within the State of

New York in his or her own name, or in the name of the firm of
attorneys of which he or she is a member, a special account
independent from his or her personal accounts.

In many areas of the state, banks require minimum deposits or service
fees for the maintenance of these accounts. Such requirements can be
financially burdensome to the small practicing attorney who handles
only a few cases which would require the collection and deposit of
clients' funds.

This bill would ameliorate this situation by providing that no bank or
trust company regulated by New York State shall charge a service fee
or require a minimum balance on an attorney trust account provided
that such account is required by law and that no more than fifteen
debit or credit transactions per month are made in connection with
such account.

 PRIOR LEGISLATIVE HISTORY :

2013-14: 53240 - Referred to Banks

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the thirtieth day after it shall have
become a law.

2015-S2868A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2868--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 29, 2015
                               ___________

Introduced  by  Sens.  PARKER, AVELLA -- read twice and ordered printed,
  and when printed to be committed to the Committee on Banks  --  recom-
  mitted  to  the  Committee  on Banks in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

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 ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section  9-x  to
read as follows:
  S 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.
  S 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.
                                                           LBD06543-02-6

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Senate Bill S2868A

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

Bill Amendments

co-Sponsors

2015-S2868 - Details

2015-S2868 - Summary

2015-S2868 - Sponsor Memo

2015-S2868 - Bill Text download pdf

co-Sponsors

2015-S2868A (ACTIVE) - Details

2015-S2868A (ACTIVE) - Summary

2015-S2868A (ACTIVE) - Sponsor Memo

2015-S2868A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2868A

Share this bill

Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Banks Committee

Bill Amendments

co-Sponsors

Tony Avella

2015-S2868 - Details

2015-S2868 - Summary

2015-S2868 - Sponsor Memo

2015-S2868 - Bill Text download pdf

co-Sponsors

Tony Avella

2015-S2868A (ACTIVE) - Details

2015-S2868A (ACTIVE) - Summary

2015-S2868A (ACTIVE) - Sponsor Memo

2015-S2868A (ACTIVE) - Bill Text download pdf

Comments