Senate Bill S5460

2021-2022 Legislative Session

Prohibits a service charge or minimum balance requirement for attorney trust accounts

download bill text pdf

Sponsored By

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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2021-S5460 (ACTIVE) - Details

See Assembly Version of this Bill:
A5212
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §9-y, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: S6216
2013-2014: S3240
2015-2016: S2868, A6794
2017-2018: S2712, A6253
2019-2020: S5001, A3229
2023-2024: S6849, A2149

2021-S5460 (ACTIVE) - 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.

2021-S5460 (ACTIVE) - Sponsor Memo

2021-S5460 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5460
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2021
                                ___________
 
 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-y to
 read as follows:
   § 9-Y. 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.
                                                            LBD07827-01-1



              

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