N.Y. BNK Law § 678 — New York Code / Act BNK / Article 13-E / Section 678
Accounts for convenience only
Status: in_force

§ 678. Accounts for convenience only. 1. When a deposit of cash,\nsecurities or other property has been made, or shares shall be issued in\nor with any banking organization or foreign banking corporation\ntransacting business in this state, in an account established after the\neffective date of this section, in the name of a depositor and another\nperson and in form to be paid or delivered to either "for the\nconvenience" of the depositor, the making of such deposit or the\nissuance of such shares shall not affect the title to such deposit or\nshares and the depositor shall not be considered to have made a gift of\none-half the deposit or of any additions or accruals thereon to the\nother person, and, on the death of the depositor, the other person shall\nhave no right of survivorship in the account. If an addition is made to\nsuch an account by anyone other than the depositor, such an addition and\naccruals thereon shall be considered to have been made by the depositor.\nSuch deposit or shares, together with all additions and accruals\nthereon, may be paid or delivered to the depositor or the other person,\nand such payment or delivery and the receipt or acquittance of the one\nto whom such payment or delivery is made, shall be a valid and\nsufficient release and discharge to the banking organization or foreign\nbanking corporation prior to the receipt by the banking organization or\nforeign banking corporation of notice in writing signed by the depositor\nnot to pay or deliver such deposit or shares and the additions and\naccruals thereon in accordance with the terms thereof, and after receipt\nof any such notice, the banking organization or foreign banking\ncorporation may require the receipt or acquittance of the depositor for\nany further payments or delivery. If the depositor is dead, such payment\nor delivery to the other person shall be a valid and sufficient release\nto the banking organization or foreign banking corporation prior to the\nreceipt by the banking organization or foreign banking corporation of\nwritten notice of the depositor's death. A banking organization or\nforeign banking corporation which, upon the death of the depositor and\nprior to service upon it of a restraining order, injunction or other\nappropriate process from a court of competent jurisdiction prohibiting\npayment, makes payment to the executor, administrator or other qualified\nrepresentative of the deceased depositor's estate, shall, to the extent\nof such payment, be released from liability to any person claiming a\nright to the funds and the receipt or acquittance of the executor,\nadministrator or qualified representative to whom payment is made shall\nbe a valid and sufficient release and discharge of the financial\ninstitution.\n  2. The superintendent of financial services shall promulgate and may\nfrom time to time amend rules and regulations which require that a\ndepositor who requests the establishment of an account in the name of\nthe depositor and another person "for the convenience" of the depositor\nbe informed of the terms and conditions of the account described in\nsubdivision one of this section, including the relationship and\nconsequences between the parties in such an account, the difference\nbetween such an account and a joint account established under section\nsix hundred seventy-five of this article, and the responsibilities of\nthe institution with which such an account is established. This\nsubdivision or any rule or regulation thereunder shall not be deemed or\nconstrued as increasing or diminishing the rights or liability of any\nperson, or other entity.\n