A 8549: Enacts provisions for the establishment and administration of joint accounts and non-survivorship accounts; provides for account agreements, payments during lifetime, and liability; provides for notice, competing claims, and court orders; defines terms; makes related provisions.

  
  STATE OF NEW YORK ________________________________________________________________________ 8549 2025-2026 Regular Sessions  IN ASSEMBLY May 20, 2025 ___________ Introduced by M. of A. LAVINE -- read once and referred to the Committee on Banks AN ACT to amend the banking law, in relation to spousal and non-spousal joint accounts and convenience accounts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 675 of the banking law is amended by adding a new 2 subdivision (d) to read as follows: 3 (d) The provisions of this section shall apply to accounts established 4 before the effective date of sections six hundred seventy-five-a and six 5 hundred seventy-five-b of this article and which have not been modified 6 by adding or deleting a signatory to such account on or after the effec- 7 tive date of such sections six hundred seventy-five-a and six hundred 8 seventy-five-b. 9 § 2. Section 678 of the banking law is amended by adding a new subdi- 10 vision 3 to read as follows: 11 3. The provisions of this section shall apply to accounts established 12 before the effective date of sections six hundred seventy-five-a and six 13 hundred seventy-five-b of this article. 14 § 3. The banking law is amended by adding two new sections 675-a and 15 675-b to read as follows: 16 § 675-a. Spousal joint deposits and shares; ownership and payment 17 during lifetime and after the death of one of the spouses. 1. When a 18 deposit of cash, securities or other property is made in or with any 19 banking organization or foreign banking corporation transacting business 20 in this state or shares are issued in any saving and loan association or 21 credit union transacting business in this state, in an account estab- 22 lished after the effective date of this section in the name of such 23 depositor or shareholder and another person, and the depositor and such 24 other person are the only parties to the account and they are spouses at 25 the time the contract, signature card or other document between them and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11949-02-5 
 A. 8549 2 1 the banking organization or foreign banking corporation is signed, or 2 they indicate that they are spouses on such contract, signature card or 3 other document at the time it is signed, and in form to be paid to or 4 delivered to either of them, such deposit or shares and any additions 5 thereto made, by either of such persons, after the making thereof, shall 6 become the property of such persons as joint tenants with right of 7 survivorship and the same, together with all additions and accruals 8 thereon, shall be held for the exclusive use of the persons so named, 9 and may be paid or delivered to either during the lifetime of both or to 10 the survivor after the death of one of them, and such payment or deliv- 11 ery and the receipt or acquittance of the one to whom such payment or 12 delivery is made, shall be a valid and sufficient release and discharge 13 to the banking organization or foreign banking corporation for all 14 payments or deliveries made on account of such deposit or shares prior 15 to the receipt by the banking organization or foreign banking corpo- 16 ration of notice in writing signed by any one of such joint tenants, not 17 to pay or deliver such deposit or shares and the additions and accruals 18 thereon in accordance with the terms thereof, and after receipt of any 19 such notice, the banking organization or foreign banking corporation may 20 require the receipt or acquittance of both such joint tenants for any 21 further payments or delivery. 22 2. The making of such deposit or the issuance of such shares in such 23 form shall, in the absence of fraud or undue influence, be prima facie 24 evidence, in any action or proceeding to which the banking organization, 25 foreign banking corporation, surviving depositor or shareholder is a 26 party, of the intention of both depositors or shareholders to create a 27 joint tenancy and to vest title to such deposit or shares, and additions 28 and accruals thereon, in such survivor. The burden of proof in refuting 29 such prima facie evidence is upon the party or parties challenging the 30 title of the survivor. 31 3. (a) The superintendent shall promulgate, and may from time to time 32 amend, rules and regulations which require that the joint tenants of an 33 account established on or after the date on which the rule or regulation 34 becomes effective and representing any deposit or shares governed by the 35 foregoing provisions of this section, shall, at the time the account is 36 established, be informed of the terms and conditions of the account 37 including the relationship and consequences between the parties in the 38 account and the responsibilities of the institution with which the 39 account is established. 40 (b) This subdivision or any rule or regulation thereunder shall not be 41 deemed or construed as increasing or diminishing the rights or liability 42 of any person, or other entity. 43 § 675-b. Non-spousal joint deposits and shares; ownership and payment 44 during lifetime and after the death of the depositor. 1. Joint 45 accounts. (a) When a deposit of cash, securities or other property is 46 made in or with any banking organization or foreign banking corporation 47 transacting business in this state or shares are issued in any saving 48 and loan association or credit union transacting business in this state, 49 in an account established after the effective date of this section in 50 the name of such depositor or shareholder and another person or persons, 51 and in form to be paid or delivered to any of the depositor or other 52 such person or persons, if none of the other persons is the spouse of 53 the depositor, or the depositor has not indicated on the contract, 54 signature card or other document between the depositor and the banking 55 organization or foreign banking corporation at the time it is signed 56 that any of the other persons is the spouse of the depositor, such 
 A. 8549 3 1 deposit or shares and any additions thereto or accruals thereon may be 2 paid or delivered to either or any during the lifetime of the depositor, 3 and such payment or delivery and the receipt or acquittance of the one 4 to whom such payment or delivery is made, shall be a valid and suffi- 5 cient release and discharge to the banking organization for all payments 6 or deliveries made on account of such deposit or shares prior to the 7 receipt by the banking organization of notice in writing signed by any 8 of such persons, not to pay or deliver such deposit or shares and the 9 additions and accruals thereon in accordance with the terms thereof, and 10 after receipt of any such notice, the banking organization may require 11 the receipt or acquittance of all such persons for any further payments 12 or delivery. 13 (b) Title to the property on deposit in an account described in para- 14 graph (a) of this subdivision or to the shares issued as described in 15 paragraph (a) of this subdivision is solely in the depositor no matter 16 the source of the property on deposit or used to acquire the shares or 17 when the property was deposited or the shares acquired. 18 (c) On the death of all the other persons during the lifetime of the 19 depositor, the payment or delivery to the depositor of any or all of the 20 funds remaining in the account shall be a valid and sufficient release 21 to the banking organization. 22 (d) On the death of the depositor during the lifetime of the other 23 person or persons, the banking organization shall deliver the funds 24 remaining in the account in accordance with the contract, signature 25 card, or other document between the banking organization and the depos- 26 itor governing the account, which contract, signature card, or other 27 document shall include a provision governing the disposition of the 28 funds remaining in the account on the death of the depositor which shall 29 be in substantially the following form: 30 On the death of the depositor, {name}, the funds in the account shall 31 be disposed of as follows (select one and initial): 32 As part of the estate of the depositor, {name} (the account is a 33 convenience account) 34 To the other person or persons {names} in equal shares (the account is 35 a survivorship account) 36 (e) If the contract, signature card, or other document does not 37 include such a provision, or if it does and the depositor did not select 38 one or the other alternative, the funds remaining in the account at the 39 depositor's death shall be part of the depositor's estate. 40 2. Convenience accounts. If the depositor has designated the intention 41 or it is conclusively presumed that the remaining funds pass as part of 42 the depositor's estate, (a) payment or delivery to the other person or 43 persons of any or all of the funds remaining in the account shall still 44 be a valid and sufficient release to the banking organization if made 45 prior to the receipt by the banking organization of written notice of 46 the depositor's death, and (b) a banking organization which, prior to 47 service upon it of a restraining order, injunction or other appropriate 48 process from a court of competent jurisdiction prohibiting payment, 49 makes payment to the executor, administrator or other qualified repre- 50 sentative of the deceased depositor's estate, shall, to the extent of 51 such payment, be released from liability to any person claiming a right 52 to the funds and the receipt or acquittance of the executor, administra- 53 tor or qualified representative to whom payment is made shall be a valid 54 and sufficient release and discharge of the banking organization. 55 3. Survivorship accounts. If the depositor has indicated the intention 56 that the remaining funds pass to the other person or persons by right of 
 A. 8549 4 1 survivorship, payment or delivery to the other person or persons of any 2 or all of the funds remaining in the account shall be a valid and suffi- 3 cient release to the banking organization if made prior to service upon 4 it of a restraining order, injunction or other appropriate process from 5 a court of competent jurisdiction prohibiting such payment. 6 4. Regulations of the superintendent. The superintendent shall promul- 7 gate and may from time to time amend rules and regulations which require 8 that the depositor of a joint account under this section be informed of 9 the terms and conditions of the account, including the relationship and 10 consequences between the parties in the account and the responsibilities 11 of the institution with which the account is established. 12 5. Application. (a) This subdivision or any rule or regulation there- 13 under shall not be deemed or construed as increasing or diminishing the 14 rights or liability of any person or entity. 15 (b) The provisions of this section shall apply to accounts established 16 on or after the effective date of this section. 17 § 4. This act shall take effect July 1, 2026. Effective immediately, 18 the addition, amendment and/or repeal of any rule or regulation neces- 19 sary for the implementation of this act on its effective date are 20 authorized to be made and completed on or before such effective date.