S 4603: Establishes standards for the closure of bank accounts in the state of New York to include providing notice of closure and the return of funds to account owners.

  
  STATE OF NEW YORK ________________________________________________________________________ 4603 2025-2026 Regular Sessions  IN SENATE February 10, 2025 ___________ Introduced by Sen. SANDERS -- 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 establishing criteria for the closure of banking accounts in the state of New York 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 9-ii to 2 read as follows: 3 § 9-ii. Closure of accounts. All banking organizations and out-of- 4 state state banks authorized to operate and maintain branches pursuant 5 to article five-C of this chapter when closing the account of a customer 6 shall: 7 (a) provide sixty days' notice that such account is being closed, 8 whether for personal or business use, and provide the reason for such 9 closure; provided that nothing in this section shall be construed to 10 preempt any federal law that prohibits disclosure of the reason for an 11 account closure; and 12 (b) return any remaining funds from such account within sixty days 13 after the closure of such account to the owner. 14 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03161-01-5