New York Banking Law
Article 13-E, Joint Deposits and Shares
Article 14
ARTICLE XIII-E
JOINT DEPOSITS AND SHARES; Unauthorized Withdrawals;
Withdrawals From Decedents` Accounts
Section
675. Joint deposits and shares; ownership and payment.
676. Unauthorized withdrawals from savings or time deposit
accounts.
677. Decedents` accounts, withdrawals by authorized persons.
678. Accounts for convenience only.
S 675. Joint deposits and shares; ownership and payment. (a) When a
deposit of cash, securities, or other property has been made or shall
hereafter be made in or with any banking organization or foreign banking
corporation transacting business in this state, or shares shall have
been already issued or shall be hereafter issued, in any savings and
loan association or credit union transacting business in this state, in
the name of such depositor or shareholder and another person and in form
to be paid or delivered to either, or the survivor of them, such deposit
or shares and any additions thereto made, by either of such persons,
after the making thereof, shall become the property of such persons as
joint tenants and the same, together with all additions and accruals
thereon, shall be held for the exclusive use of the persons so named,
and may be paid or delivered to either during the lifetime of both or to
the survivor after the death of one of them, and such payment or
delivery and the receipt or acquittance of the one to whom such payment
or delivery is made, shall be a valid and sufficient release and
discharge to the banking organization or foreign banking corporation for
all payments or deliveries made on account of such deposit or shares
prior to the receipt by the banking organization or foreign banking
corporation of notice in writing signed by any one of such joint
tenants, not to pay or deliver such deposit or shares and the additions
and accruals thereon in accordance with the terms thereof, and after
receipt of any such notice, the banking organization or foreign banking
corporation may require the receipt or acquittance of both such joint
tenants for any further payments or delivery.
(b) The making of such deposit or the issuance of such shares in such
form shall, in the absence of fraud or undue influence, be prima facie
evidence, in any action or proceeding to which the banking organization,
foreign banking corporation, surviving depositor or shareholder is a
party, of the intention of both depositors or shareholders to create a
joint tenancy and to vest title to such deposit or shares, and additions
and accruals thereon, in such survivor. The burden of proof in refuting
such prima facie evidence is upon the party or parties challenging the
title of the survivor.
(c) 1. The banking board shall promulgate and may from time to time
amend rules and regulations which require that the joint tenants of an
account established on or after the date on which the rule or regulation
becomes effective and representing any deposit or shares governed by the
foregoing provisions of this section, shall, at the time the account is
established be informed of the terms and conditions of the account
including the relationship and consequences between the parties in the
account and the responsibilities of the institution with which the
account is established.
2. This subdivision or any rule or regulation thereunder shall not be
deemed or construed as increasing or diminishing the rights or liability
of any person, or other entity.
S 676. Unauthorized withdrawals from savings or time deposit accounts.
Any withdrawal of moneys from any savings account or time deposit
account maintained in any banking organization, branch of a foreign
banking corporation, national bank, federal savings and loan association
or federal credit union located in this state which is made by means of
an unauthorized signature is wholly inoperative as to the person whose
name is signed unless such person has authorized or ratified such
withdrawal or is precluded from denying such withdrawal because he has
received a portion of the funds withdrawn, provided that in such latter
event he shall be precluded from denying such withdrawal only with
respect to the funds so received; provided, however, that such a
signature shall operate as the signature of the unauthorized signer in
favor of any such banking organization, branch of a foreign banking
corporation, national bank, federal savings and loan association or
federal credit union which has, in good faith, honored such withdrawal.
No such banking organization, branch of a foreign banking corporation,
national bank, federal savings and loan association or federal credit
union shall interpose the defense, in an action for recovery by a
depositor of money paid upon an unauthorized signature, that it has
exercised due care and diligence in ascertaining the identity of the
person to whom it has paid such money. The term "unauthorized signature"
shall have the meaning ascribed to it by section 1--201 of the uniform
commercial code and the term "savings account" shall include shares
issued by a savings and loan association, state or federally chartered,
and by a credit union, state or federally chartered.
Any waiver of the provisions of this section or any contrary
agreement, by-law, rule or regulation of any banking organization,
branch of a foreign banking corporation, national bank, federal savings
and loan association or federal credit union located in this state shall
be void as against public policy and wholly unenforceable.
S 677. Decedents` accounts, withdrawals by authorized persons. 1. The
maximum withdrawal permissible by law for purposes of this section shall
be the amount permitted to be paid, without the consent of the
commissioner of taxation and finance, under rules or regulations
promulgated by such commissioner pursuant to section one hundred
seventy-one of the tax law.
3. Notwithstanding the foregoing, no banking organization or foreign
banking corporation shall be required to make any payment pursuant to
this section if (a) it has notice of an adverse claim with respect to
any such savings or time deposits or shares standing on its books to the
credit of the decedent, or (b) there is in effect an order, injunction
or other appropriate process of a court of competent jurisdiction
restraining such payment, or (c) it has notice that such payment would
violate the terms of a legal and valid trust, or (d) such payment is
inconsistent with any federal laws or regulations.
4. Such payments as any banking organization or foreign banking
corporation is required to make pursuant to this section shall be a
valid and sufficient release and discharge to such banking organization
or foreign banking corporation for any payment so made.
S 678. Accounts for convenience only. 1. When a deposit of cash,
securities or other property has been made, or shares shall be issued in
or with any banking organization or foreign banking corporation
transacting business in this state, in an account established after the
effective date of this section, in the name of a depositor and another
person and in form to be paid or delivered to either "for the
convenience" of the depositor, the making of such deposit or the
issuance of such shares shall not affect the title to such deposit or
shares and the depositor shall not be considered to have made a gift of
one-half the deposit or of any additions or accruals thereon to the
other person, and, on the death of the depositor, the other person shall
have no right of survivorship in the account. If an addition is made to
such an account by anyone other than the depositor, such an addition and
accruals thereon shall be considered to have been made by the depositor.
Such deposit or shares, together with all additions and accruals
thereon, may be paid or delivered to the depositor or the other person,
and such payment or delivery and the receipt or acquittance of the one
to whom such payment or delivery is made, shall be a valid and
sufficient release and discharge to the banking organization or foreign
banking corporation prior to the receipt by the banking organization or
foreign banking corporation of notice in writing signed by the depositor
not to pay or deliver such deposit or shares and the additions and
accruals thereon in accordance with the terms thereof, and after receipt
of any such notice, the banking organization or foreign banking
corporation may require the receipt or acquittance of the depositor for
any further payments or delivery. If the depositor is dead, such payment
or delivery to the other person shall be a valid and sufficient release
to the banking organization or foreign banking corporation prior to the
receipt by the banking organization or foreign banking corporation of
written notice of the depositor`s death. A banking organization or
foreign banking corporation which, upon the death of the depositor and
prior to service upon it of a restraining order, injunction or other
appropriate process from a court of competent jurisdiction prohibiting
payment, makes payment to the executor, administrator or other qualified
representative of the deceased depositor`s estate, shall, to the extent
of such payment, be released from liability to any person claiming a
right to the funds and the receipt or acquittance of the executor,
administrator or qualified representative to whom payment is made shall
be a valid and sufficient release and discharge of the financial
institution.
2. The banking board shall promulgate and may from time to time amend
rules and regulations which require that a depositor who requests the
establishment of an account in the name of the depositor and another
person "for the convenience" of the depositor be informed of the terms
and conditions of the account described in subdivision one of this
section, including the relationship and consequences between the parties
in such an account, the difference between such an account and a joint
account established under section six hundred seventy-five of this
article, and the responsibilities of the institution with which such an
account is established. This subdivision or any rule or regulation
thereunder shall not be deemed or construed as increasing or diminishing
the rights or liability of any person, or other entity.
Article 14
ARTICLE XIV
Laws Repealed; Construction; When to Take Effect.
Section 700. Laws repealed.
701. Construction.
702. When to take effect.
S 700. Laws repealed. Of the laws enumerated in the schedule hereto
annexed, that portion specified in the last column is hereby repealed.
S 701. Construction. The provisions of this chapter shall be construed
as a continuation of the provisions of chapter ten of the laws of
nineteen hundred nine, as amended, modified or amended according to the
language employed, and not as a new enactment.
S 702. When to take effect. This act, except the repeal of chapters
three hundred forty-eight of the laws of nineteen hundred ten and three
hundred ninety-three of the laws of nineteen hundred eleven, shall take
effect immediately; and the repeal of chapters three hundred forty-eight
of the laws of nineteen hundred ten and three hundred ninety-three of
the laws of nineteen hundred eleven, shall take effect on November
first, nineteen hundred fourteen.