2023 New York Laws › BNK - Banking › Article 13-E - Joint Deposits and Shares; Unauthorized Withdrawals; Withdrawals From Decedents' Accounts › 678 - Accounts for Convenience Only.

§ 678.  Accounts  for  convenience  only.  1.  When a deposit of cash,
  securities or other property has been made, or shares shall be issued in
  or  with  any  banking  organization  or  foreign  banking   corporation
  transacting  business in this state, in an account established after the
  effective date of this section, in the name of a depositor  and  another
  person  and  in  form  to  be  paid  or  delivered  to  either  "for the
  convenience" of the  depositor,  the  making  of  such  deposit  or  the
  issuance  of  such  shares shall not affect the title to such deposit or
  shares and the depositor shall not be considered to have made a gift  of
  one-half  the  deposit  or  of  any additions or accruals thereon to the
  other person, and, on the death of the depositor, the other person shall
  have no right of survivorship in the account. If an addition is made  to
  such an account by anyone other than the depositor, such an addition and
  accruals thereon shall be considered to have been made by the depositor.
  Such  deposit  or  shares,  together  with  all  additions  and accruals
  thereon, may be paid or delivered to the depositor or the other  person,
  and  such  payment or delivery and the receipt or acquittance of the one
  to whom such  payment  or  delivery  is  made,  shall  be  a  valid  and
  sufficient  release and discharge to the banking organization or foreign
  banking corporation prior to the receipt by the banking organization  or
  foreign banking corporation of notice in writing signed by the depositor
  not  to  pay  or  deliver  such  deposit or shares and the additions and
  accruals thereon in accordance with the terms thereof, and after receipt
  of  any  such  notice,  the  banking  organization  or  foreign  banking
  corporation  may require the receipt or acquittance of the depositor for
  any further payments or delivery. If the depositor is dead, such payment
  or delivery to the other person shall be a valid and sufficient  release
  to  the banking organization or foreign banking corporation prior to the
  receipt by the banking organization or foreign  banking  corporation  of
  written  notice  of  the  depositor's  death.  A banking organization or
  foreign banking corporation which, upon the death of the  depositor  and
  prior  to  service  upon  it of a restraining order, injunction or other
  appropriate process from a court of competent  jurisdiction  prohibiting
  payment, makes payment to the executor, administrator or other qualified
  representative  of the deceased depositor's estate, shall, to the extent
  of such payment, be released from liability to  any  person  claiming  a
  right  to  the  funds  and  the  receipt or acquittance of the executor,
  administrator or qualified representative to whom payment is made  shall
  be  a  valid  and  sufficient  release  and  discharge  of the financial
  institution.
2. The superintendent of financial services shall promulgate  and  may
  from  time  to  time  amend  rules  and regulations which require that a
  depositor who requests the establishment of an account in  the  name  of
  the  depositor and another person "for the convenience" of the depositor
  be informed of the terms and conditions  of  the  account  described  in
  subdivision   one  of  this  section,  including  the  relationship  and
  consequences between the parties in  such  an  account,  the  difference
  between  such  an  account and a joint account established under section
  six hundred seventy-five of this article, and  the  responsibilities  of
  the  institution  with  which  such  an  account  is  established.  This
  subdivision or any rule or regulation thereunder shall not be deemed  or
  construed  as  increasing  or diminishing the rights or liability of any
  person, or other entity.