N.Y. BNK Law § 9-Y — New York Code / Act BNK / Article 1 / Section 9-Y
Order of payment of checks and other debits, insufficient funds charges and return deposit item charges
Status: in_force

§ 9-y. Order of payment of checks and other debits, insufficient funds\ncharges and return deposit item charges. 1. Order of paying checks. (a)\nNotwithstanding any law, rule or regulation to the contrary, every\nbanking organization that provides checking services to consumer\naccounts shall either pay checks in the order wherein they are received\nor pay checks from smallest to largest dollar amount for each business\nday's transactions.\n  (b) If a check is dishonored for insufficient funds and thereafter\nsmaller checks which could be paid are received, the smaller checks\nshall be honored within amounts on deposit in the subject account.\n  (c) The banking organization shall disclose to consumers in writing\nthe order in which checks are drawn. The written disclosure shall be\nprovided to the consumer at the time the account is opened and prior to\nany change in such policy.\n  (d) The superintendent shall promulgate rules and regulations\nnecessary for the implementation of this section.\n  2. Regulation of other consumer account transactions and associated\nfees. (a) The superintendent shall have the power to prescribe by\nregulation:\n  i. the manner in which banking organizations process debit and credit\ntransactions, other than those specified in subdivision one of this\nsection, for consumer accounts maintained at such organization;\n  ii. the charges that may be imposed in connection with a check drawn\nor other written order upon, or electronic transfer sought to be\neffectuated against, insufficient funds or uncollected balances in a\nconsumer account, whether or not the banking organization pays such\ncheck, written order, or electronic transfer;\n  iii. the charges that may be imposed in connection with a check or\nother written order received by a banking organization for deposit or\ncollection drawn against a consumer account and subsequently dishonored\nand returned for any reason by the drawee;\n  iv. disclosures provided to consumers regarding the processing of\ntransactions in a consumer account and the associated fees; and\n  v. alerts, notices, and other disclosures relating to the imposition\nor possible imposition of a charge as provided in subparagraphs ii and\niii of this paragraph.\n  (b) In prescribing regulations regarding the manner in which banking\norganizations process debit or credit transactions, or the charges that\nmay be imposed pursuant to subparagraphs ii or iii of paragraph (a) of\nthis subdivision, the superintendent shall consider, at a minimum, the\nfollowing factors:\n  i. the cost incurred by the banking organization, in providing any\nservices associated with such charges;\n  ii. the competitive position of the banking organization; and\n  iii. the maintenance of a safe and sound banking organization that\nprotects the public interest.\n  3. Definition. As used in this section, "consumer accounts" means\naccounts at banking organizations established by natural persons\nprimarily for personal, family or household purposes.\n