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08/23/2021
Legislation (S.1465/A.1073) Requires Banking Institutions that Maintain Checking Accounts to Pay Checks in the Order they Are Received
governor.ny.gov
Governor Andrew M. Cuomo today signed legislation (S.1465/A.1073) requiring banks to take several actions that prevent overdraft fees. The legislation requires banking institutions that maintain checking accounts to pay checks in the order they are received. If a bank receives a check for a greater amount of money than the balance in the account, it may decline to pay the check. However, the banking institution must honor any smaller checks that can be paid with the existing account balance.
"The COVID pandemic had a devastating effect on our economy and as a result, many New Yorkers still struggle to pay their bills, and the arbitrary overdraft fees that banks have continued to issue only add insult to injury," Governor Cuomo said. "This legislation will require banks to take several actions that reduce the opportunities for charging overdraft fees and keep more money in New Yorkers' pockets. We continue to face the economic impacts of the COVID-19 pandemic and this commonsense bill will help many of the state's residents who need it most."
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