NY Banking L § 14-F (2021)
2021 New York Laws BNK - Banking Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers 14-F - Power of the Superintendent of Financial Services to Require the Provision of Basic Banking Services.

§ 14-f.  Power  of the superintendent of financial services to require the provision of basic banking services. 1. The  legislature  finds  and declares  that certain consumers residing in this state may be unable to afford, without undue financial hardship,  the  cost  of  maintaining  a consumer  transaction  account  at a banking institution located in this state. It is the policy of this state that,  consistent  with  safe  and sound  banking practices, banking institutions make available lower cost banking services to consumers. It is further intended  that  no  banking institution  be  required to offer lower cost banking services at a cost to account holders which is less than the actual  cost  to  the  banking institution to provide such services.   2.  Except  as  otherwise  provided  in  this  section,  every banking institution shall make available to  consumers  a  consumer  transaction account,  to  be  known as a "basic banking account", with the following features to be prescribed by the superintendent of financial services by regulation:  (a) the maximum amount which a banking institution may require  as  an initial deposit, if any;  (b)  the maximum amount a banking institution may require as a minimum balance, if any, to maintain such account;  (c) eight withdrawal transactions for account holders under sixty-five years of age, and twelve withdrawal  transactions  for  account  holders sixty-five   years  of  age  or  older,  including  those  conducted  at electronic facilities, during any periodic cycle at no additional charge to the account holder; and  (d) the maximum amount a banking institution may charge  per  periodic cycle for the use of such account.   3.  With respect to any transactions in excess of the number specified in accordance with paragraph (c) of subdivision two of this section, (a) a banking institution may impose a reasonable per-transaction charge, or (b) it may impose  the  fees  and  charges  normally  applied  to  other consumer  transaction  accounts  available  at  that banking institution provided that any charge per periodic cycle imposed  hereunder  must  be reduced  by the charge imposed under paragraph (d) of subdivision two of this section; provided however, that at  no  time  shall  the  fees  and charges  on the basic banking account exceed the amount that is normally applied to other consumer transaction accounts available at that banking institution.   4. A banking institution may require as a  condition  for  opening  or maintaining  a  basic  banking  account,  (a) that the holder of a basic banking account be a resident of this state; and (b) the direct  deposit to  the  banking  institution  of  recurring  payments  such as, but not limited to, social security, wage,  or  pension  payments  where  direct deposit is available to both the consumer and the banking institution.   5.  Except  as  provided in this section and any rules and regulations promulgated hereunder, a basic banking account may be offered subject to the same rules,  conditions  and  terms  normally  applicable  to  other consumer  transaction  accounts  offered  by  the  banking  institution; provided that the fees and charges  for  specific  services  other  than those  otherwise provided in this section shall not exceed those imposed by the banking institution for the  same  services  in  connection  with other consumer transaction accounts offered by the banking institution.   6.  No  banking  institution shall be required to permit any person to open or maintain a basic banking account pursuant  to  this  section  if such  person  maintains  another  consumer transaction account either at that banking institution or any other banking institution.   7. In lieu of the basic banking account required by  this  section,  a banking  institution  may make available an alternative account or other  banking services determined by the superintendent  to  be  at  least  as advantageous to consumers as the basic banking account.   8.  (a)  Where a banking institution posts in the public area of its offices notice of the availability of  its  other  consumer  transaction accounts,  it  shall also post equally conspicuous notice in such public areas and in the same manner  the  availability  of  its  basic  banking accounts.  Where  a  banking  institution makes available in such public areas material describing the terms of its  other  consumer  transaction accounts,  it  shall also make comparable descriptive material available in the same such areas and in the same  manner  for  its  basic  banking account.  (b)  Where  a  banking  institution  posts  in  the public area of its offices the notices for information required in paragraph  (a)  of  this subdivision,  it  shall  also  post  equally  conspicuous notice in such public areas and in the same  manner,  of  the  department's  toll  free consumer's hotline telephone number, where consumers can file complaints if  a  consumer is not satisfied with the services a banking institution provides.   9. For purposes of this section:  (a) "banking institution" means any bank, trust company, savings bank, savings and loan association, or credit union, or branch  of  a  foreign banking  corporation  the  deposits  of which are insured by the Federal Deposit  Insurance  Corporation,  which  is   incorporated,   chartered, organized or licensed under the laws of this state or any other state or the  United  States, and, in the ordinary course of its business, offers consumer transaction accounts to the general public or, in the case of a credit union, to its members;  (b) "consumer transaction account" means  a  demand  deposit  account, negotiable  order  of withdrawal account, share draft account or similar account used primarily for personal, family or household purposes.   10. For purposes of  this  section,  any  banking  insititution  which offers  share  draft  accounts  shall  use  the  term "basic share draft account" instead of "basic banking account".   11. If any provision of this  section,  or  the  application  of  such provision  to  any  person  or  circumstance  shall be held invalid, the remainder of this  section,  and  the  application  of  such  provisions thereof  to  persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.