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A10905 Summary:

BILL NOA10905
 
SAME ASSAME AS S06650
 
SPONSORLupardo
 
COSPNSRWright, Seawright, Walter
 
MLTSPNSR
 
Add 679, Bank L
 
Directs the superintendent to develop a public information campaign regarding establishment of joint deposit and convenience accounts.
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A10905 Actions:

BILL NOA10905
 
05/29/2018referred to banks
06/05/2018reported referred to ways and means
06/11/2018reported referred to rules
06/13/2018reported
06/13/2018rules report cal.198
06/13/2018ordered to third reading rules cal.198
06/18/2018substituted by s6650
 S06650 AMEND= SERINO
 06/09/2017REFERRED TO RULES
 06/12/2017ORDERED TO THIRD READING CAL.1577
 06/13/2017PASSED SENATE
 06/13/2017DELIVERED TO ASSEMBLY
 06/13/2017referred to banks
 01/03/2018died in assembly
 01/03/2018returned to senate
 01/03/2018REFERRED TO BANKS
 05/09/20181ST REPORT CAL.1138
 05/14/20182ND REPORT CAL.
 05/15/2018ADVANCED TO THIRD READING
 06/04/2018PASSED SENATE
 06/04/2018DELIVERED TO ASSEMBLY
 06/04/2018referred to banks
 06/18/2018substituted for a10905
 06/18/2018ordered to third reading rules cal.198
 06/18/2018passed assembly
 06/18/2018returned to senate
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A10905 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10905         REVISED MEMO 07/02/2018
 
SPONSOR: Lupardo
  TITLE OF BILL: An act to amend the banking law, in relation to public awareness of joint deposit and convenience accounts   PURPOSE OR GENERAL IDEA OF BILL: Relates to the establishment of joint deposit and convenience accounts awareness campaign.   SUMMARY OF PROVISIONS: Section 1: Amends the Banking Law by adding a new section 679. Section 2: Effective date.   JUSTIFICATION: In February 2017, the New York State Senate and Assembly Aging Commit- tees held a joint public hearing regarding the incidence and prevention of elder abuse in the State of New York. As part of its testimony at the hearing, the District Attorneys Association of the State of New York recommended modifications to the banking law to require that account holders be informed of the opportunity to open convenience accounts as opposed to joint accounts when managing their finances. Joint accounts are commonly opened when an elderly individual is seeking assistance with paying bills or budgeting for daily living expenses. Unfortunately, these types of accounts pose several risks for elder abuse including financial exploitation. Pursuant to banking law section 675, joint accounts create a legal relationship between co-owners that includes the equal right to access funds in the account as well as the right of survivorship when one of the co-owners dies. As a result, vulnerable seniors are at increased risk of joint owners withdrawing money for their own use, exposing account funds to creditor claims, and undermining a senior's estate plan. In contrast to joint accounts, convenience accounts allow the depositor to retain ownership rights, and establishes a fiduciary relationship that binds the other person named on the account to act in the best interests of the depositor. Due to this arrangement, criminal prose- cution is more viable when there is misuse of a vulnerable elderly person's funds. While access to these accounts is established in law, and has been advo- cated for by senior advocacy groups, the Consumer Protection Bureau and law enforcement, it has been reported that banking institutions do not publicize these types of accounts, and in some instances, do not offer them. This legislation will allow for a public awareness campaign to inform consumers on banking services and options, differences in terms of service, and varying rights and responsibilities associated with differ- ent types of accounts. The public awareness campaign is intended to inform vulnerable seniors, those with conditions that impair financial independence, as well as families and providers, of the potential options for financial planning in the State.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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