New York Assembly Bill A01578 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 1578--A 2023-2024 Regular Sessions  IN ASSEMBLY January 17, 2023 ___________ Introduced by M. of A. WALLACE, TAPIA, LUPARDO -- read once and referred to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to establishing joint and survivorship accounts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The banking law is amended by adding a new section 675-a to 2 read as follows: 3 § 675-a. Joint accounts; joint and survivorship accounts. 1. Joint 4 accounts. (a) When a deposit of cash, securities, or other property has 5 been made or shall hereafter be made in or with any banking organization 6 or foreign banking corporation transacting business in this state, or 7 shares shall have been already issued or shall be hereafter issued, in 8 any savings and loan association or credit union transacting business in 9 this state, in the name of such depositor or shareholder and another 10 person and in form to be paid or delivered to either, or the survivor of 11 them, such deposit or shares and any additions thereto or accruals ther- 12 eon may be paid or delivered to either during the lifetime of both, and 13 such payment or delivery and the receipt or acquittance of the one to 14 whom such payment or delivery is made, shall be a valid and sufficient 15 release and discharge to the banking organization for all payments or 16 deliveries made on account of such deposit or shares prior to the 17 receipt by the banking organization of notice in writing signed by 18 either one of such persons, not to pay or deliver such deposit or shares 19 and the additions and accruals thereon in accordance with the terms 20 thereof, and after receipt of any such notice, the banking organization 21 may require the receipt or acquittance of both such persons for any 22 further payments or delivery. 23 (b) Title to the property on deposit in an account described in para- 24 graph (a) of this subdivision or to the shares issued as described in EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01238-03-3 
 A. 1578--A 2 1 paragraph (a) of this subdivision is solely in the depositor no matter 2 the source of the property on deposit or used to acquire the shares or 3 when the property was deposited or the shares acquired. 4 (c) On the death of the other person during the lifetime of the depos- 5 itor the payment or delivery to the depositor of any or all of the funds 6 remaining in the account shall be a valid and sufficient release to the 7 banking organization. 8 (d) On the death of the depositor during the lifetime of the other 9 person, the banking organization shall deliver the funds remaining in 10 the account in accord with the contract, signature card, or other docu- 11 ment between the banking organization and the depositor governing the 12 account, which contract, signature card, or other document shall 13 include a provision governing the disposition of the funds remaining in 14 the account on the death of the depositor which shall be in substantial- 15 ly the following form: 16 On the death of the depositor, {name}, the funds in the account shall 17 be disposed of as follows (select one and initial): 18 As part of the estate of the depositor, {name}. (the account is a 19 convenience account) 20 To the other person, {name}. (the account is a survivorship account) 21 (e) If the contract, signature card, or other document does not 22 include such a provision or if it does and the depositor did not select 23 one or the alternative the funds remaining in the account at the depos- 24 itor's death shall be part of the depositor's estate. 25 2. Convenience accounts. If the depositor has designated the inten- 26 tion or it is conclusively presumed that the remaining funds pass as 27 part of the depositor's estate, (a) payment or delivery to the other 28 person of any or all of the funds remaining in the account shall still 29 be a valid and sufficient release to the banking organization if made 30 prior to the receipt by the banking organization of written notice of 31 the depositor's death, and (b) a banking organization which, prior to 32 service upon it of a restraining order, injunction or other appropriate 33 process from a court of competent jurisdiction prohibiting payment, 34 makes payment to the executor, administrator or other qualified repre- 35 sentative of the deceased depositor's estate, shall, to the extent of 36 such payment, be released from liability to any person claiming a right 37 to the funds and the receipt or acquittance of the executor, administra- 38 tor or qualified representative to whom payment is made shall be a valid 39 and sufficient release and discharge of the banking organization. 40 3. Survivorship accounts. If the depositor has indicated the intention 41 that the remaining funds pass to the other person by right of survivor- 42 ship, payment or delivery to the other person of any or all of the funds 43 remaining in the account shall be a valid and sufficient release to the 44 banking organization if made prior to service upon it of a restraining 45 order, injunction or other appropriate process from a court of competent 46 jurisdiction prohibiting such payment. 47 4. Regulations of the superintendent. The superintendent shall promul- 48 gate and may from time to time amend rules and regulations which require 49 that the depositor of a joint account under this section be informed of 50 the terms and conditions of the account, including the relationship and 51 consequences between the parties in the account and the responsibilities 52 of the institution with which the account is established. 53 5. Application. (a) This subdivision or any rule or regulation there- 54 under shall not be deemed or construed as increasing or diminishing the 55 rights or liability of any person or entity. 
 A. 1578--A 3 1 (b) The provisions of this section shall apply to accounts established 2 on or after the effective date of this section. 3 § 2. This act shall take effect on the thirtieth day after it shall 4 have become a law. Effective immediately, the addition, amendment 5 and/or repeal of any rule or regulation necessary for the implementation 6 of this act on its effective date are authorized to be made and 7 completed on or before such effective date.