2023 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.