2023 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.