Requires notice to renters of safe deposit boxes regarding fees and charges.
Ayes (7): Onorato, Breslin, Krueger, Klein, Adams, Kruger, Diaz
Ayes W/R (4): Foley, Stewart-Cousins, Savino, Peralta
Nays (7): Farley, Johnson O, DeFrancisco, Bonacic, Golden, Marcellino, Ranzenhofer
Excused (1): Morahan
TITLE OF BILL: An act to amend the banking law, in relation to requiring notice to renters of safe deposit boxes regarding fees and charges
PURPOSE OR GENERAL IDEA OF BILL: To protect renters of safety deposit boxes from inappropriate rental fees and applicable charges imposed by banking organizations or safe deposit box companies.
SUMMARY OF SPECIFIC PROVISIONS: Subdivision 1 requires any banking organization or safe deposit company which offers safe deposit boxes to provide a schedule of all fees and charges applicable to the rental of the safe deposit box in the rental agreement. Such fees and charges will be approved by the superintendent.
Subdivision 2 requires any banking organization or safe deposit company which offers safe deposit boxes for rent to include, in the annual report to the superintendent, a schedule of all fees and charges imposed on the lessee.
Subdivision 3 states that no fees or charges can be imposed on a lessee when an act of God, common disaster, or emergency situation, renders the lessee unable to access the safe deposit box.
JUSTIFICATION: Several of the victims of the recent Chinatown fire, many who are elderly, families with young children, or individuals with low income, were charged exorbitant fees to replace lost safe deposit keys. In addition, other constituents have stated that they are being charged fees to obtain copies of old bank statements and, other documents necessary to verify their former address. New Yorkers who have literally lost everything are being charged fees to access their valuables and critical identification documents. Charging fees under these circumstances is unfair.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.
EFFECTIVE DATE: Immediately, and shall apply to all safe deposit box rental agreements entered into on or after such date.
STATE OF NEW YORK ________________________________________________________________________ 8066 IN SENATE June 4, 2010 ___________Introduced by Sen. SQUADRON -- 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 requiring notice to renters of safe deposit boxes regarding fees and charges 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 339 to read as follows: S 339. NOTICE TO RENTERS OF SAFE DEPOSIT BOXES REGARDING FEES AND CHARGES. 1. ANY BANKING ORGANIZATION OR SAFE DEPOSIT COMPANY WHICH OFFERS SAFE DEPOSIT BOXES FOR RENT SHALL PROVIDE IN THE RENTAL AGREEMENT REQUIRED PURSUANT TO SECTION THREE HUNDRED THIRTY-EIGHT OF THIS ARTICLE A SCHEDULE OF ALL FEES AND CHARGES APPLICABLE TO THE RENTAL OF SUCH SAFE DEPOSIT BOX IN AT LEAST FOURTEEN POINT TYPE. ALL SUCH FEES AND CHARGES IMPOSED UPON LESSEES OF SAFE DEPOSIT BOXES SHALL BE DEEMED REASONABLE BY THE SUPERINTENDENT. 2. ANY BANKING ORGANIZATION OR SAFE DEPOSIT COMPANY WHICH OFFERS SAFE DEPOSIT BOXES FOR RENT SHALL INCLUDE IN ITS ANNUAL REPORT TO THE SUPER- INTENDENT REQUIRED PURSUANT TO SECTION THREE HUNDRED TWENTY-NINE OF THIS CHAPTER A SCHEDULE OF ALL FEES AND CHARGES IMPOSED ON LESSEES FOR THE RENTAL OF SAFE DEPOSIT BOXES. 3. NO RENTAL AGREEMENT FOR THE RENTAL OF A SAFE DEPOSIT BOX SHALL IMPOSE ANY FEE OR CHARGE UPON A LESSEE, OR ANYONE WHO WOULD OTHERWISE HAVE ACCESS TO SUCH SAFE DEPOSIT BOX, FOR GAINING ACCESS TO SUCH SAFE DEPOSIT BOX WHERE AN ACT OF GOD, COMMON DISASTER OR EMERGENCY SITUATION HAS OCCURRED RENDERING THE LESSEE UNABLE TO ACCESS SUCH SAFE DEPOSIT BOX. THE SUPERINTENDENT SHALL PROMULGATE ANY RULES OR REGULATIONS NECESSARY FOR CARRYING OUT THE PROVISIONS OF THIS SECTION. S 2. This act shall take effect immediately and shall apply to all safe deposit box rental agreements entered into on or after such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD17089-01-0