NY Banking L § 14-D (2021)
2021 New York Laws BNK - Banking Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers 14-D - Power of the Superintendent of Financial Services to Prescribe a Reasonable Period of Time Permitting the Drawing on Items Received for Deposit in a Customer's Account.

§ 14-d. Power of the superintendent of financial services to prescribe a reasonable period of time permitting the drawing on items received for deposit  in  a  customer's  account.  1. It is the public policy of this state to provide all banking customers with the ability to draw  against items  deposited  for collection with any banking institution located in this state within a reasonable period of time.   2.  The  superintendent  of  financial   services   shall   promulgate regulations,  which  may  be  amended  from time to time, establishing a reasonable period of time within which a banking institution must permit a banking customer to draw, as of right,  on  an  item  which  has  been received for deposit in the customer's account.   3.   The   superintendent   is   authorized  to  gather  from  banking institutions such information as may be required by  the  superintendent of  financial  services for the promulgation of the regulations required by this section.   4.  (a)  Except  as  otherwise  provided  in  paragraph  (b)  of  this subdivision,  a provision in any agreement between a banking institution and its banking customer which provides for a period of time longer than the period prescribed under regulations  promulgated  pursuant  to  this section  is  unreasonable  for  purposes  of article four of the uniform commercial code and,  in  lieu  thereof,  the  maximum  period  of  time permitted  in  the regulation shall be deemed controlling. For all other purposes the provisions of this section shall not be deemed or construed to alter or impair any right or obligation under the uniform  commercial code.  (b) This section does not prohibit a banking institution and a banking customer  from agreeing in writing to a greater period of time than that otherwise prescribed by regulation pursuant  to  this  section  for  the drawing  against  items because of special circumstances, provided that, such agreement is not contained in a  pre-printed  form  and  is  not  a usual, regular business practice of the institution.   5.  Such regulations shall require every banking institution to notify each of its banking  customers,  in  writing,  of  the  applicable  time limitations  on  the  right to draw on items received for deposit in the customer's account and to keep posted in a  conspicuous  place  at  each branch,  a  notice  substantially setting forth the generally applicable time limitations of the banking institution's customers' rights to  draw on items deposited to their accounts.   6.  The  superintendent  of  financial  services  is empowered, upon a determination that the  uniform  application  of  a  regulation  adopted pursuant  to  this  section  would  result  in unsafe or unsound banking practices, to issue  such  further  regulation  or  order  with  respect thereto as it deems appropriate.   7. In this section "banking institution" has the same meaning ascribed to  it by section nine-f of this chapter and "item" has the same meaning ascribed to it by the uniform commercial code.