New York A 8319: Relates to limits on overdraft fees charged by certain state chartered banking institutions

Bill Text

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A08319 Summary:

BILL NOA08319 

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SAME ASNo Same As

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SPONSORRosenthal

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COSPNSR

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MLTSPNSR

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Amd §§9-y, 108, 235-c & 383, add §9-q, Bank L

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Provides that charges imposed by certain state chartered banking institutions in connection with a check or other written order drawn on insufficient funds shall not exceed the greater of five dollars or the pro rata share of such state chartered banking institution's total direct costs and charge-off losses for providing non-covered overdraft credit.

Go to top A08319 Actions:

BILL NOA08319 

&nbsp

05/13/2025referred to banks

01/07/2026referred to banks

Go to topA08319 Committee&nbspVotes:

Go to topA08319 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA08319 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 8319

 2025-2026 Regular Sessions

 IN ASSEMBLY

 May 13, 2025
 ___________

 Introduced by M. of A. ROSENTHAL -- read once and referred to the
 Committee on Banks

 AN ACT to amend the banking law, in relation to limits on overdraft fees
 charged by certain state chartered banking institutions

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subparagraph ii of paragraph (a) of subdivision 2 and
 2 subdivision 3 of section 9-y of the banking law, subparagraph ii of
 3 paragraph (a) of subdivision 2 as added and subdivision 3 as amended by
 4 chapter 556 of the laws of 2023, are amended to read as follows:
 5 ii. the charges that may be imposed in connection with a check drawn
 6 or other written order upon, or electronic transfer sought to be effec-
 7 tuated against, insufficient funds or uncollected balances in a consumer
 8 account, whether or not the banking organization pays such check, writ-
 9 ten order, or electronic transfer; provided, however, that for a banking
 10 organization that is a state chartered banking institution subject to
 11 section nine-q of this article, such charges shall not exceed the great-
 12 er of five dollars or the pro rata share of such banking organization's
 13 total direct costs and charge-off losses for providing non-covered over-
 14 draft credit in the previous year, calculated in accordance with section
 15 nine-q of this article;
 16 3. [Definition] Definitions. As used in this section[,]: (a)
 17 "[consumer] Consumer accounts" means accounts at banking organizations
 18 established by natural persons primarily for personal, family or house-
 19 hold purposes.
 20 (b) "Non-covered overdraft credit" means overdraft credit that is not
 21 subject to the federal Truth in Lending Act, Regulation Z, 12 C.F.R. §
 22 1026.22.
 23 (c) "Overdraft credit" means any consumer credit extended by a banking
 24 organization to pay a transaction from a checking or other transaction
 25 account, other than a prepaid account as such term is defined in 12

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11634-01-5

 A. 8319 2

 1 C.F.R. § 1026.61, held at the banking organization where the customer
 2 has insufficient or unavailable funds in such account. The term "over-
 3 draft credit" includes, but is not limited to, any such customer credit
 4 extended through a transfer from a credit card account or overdraft.
 5 § 2. Paragraph (a) of subdivision 8 of section 108 of the banking law,
 6 as amended by chapter 155 of the laws of 2012, is amended and a new
 7 paragraph (e) is added to read as follows:
 8 (a) The superintendent shall have the power to prescribe by regulation
 9 (i) the maximum charge which may be imposed in this state by a bank or
 10 trust company in connection with a check or other written order drawn
 11 upon it on insufficient funds, irrespective of whether the instrument is
 12 paid, accepted, or returned by the bank, provided, however, that such
 13 maximum charge shall not exceed the greater of five dollars or the pro
 14 rata share of such bank's or trust company's total direct costs and
 15 charge-off losses for providing non-covered overdraft credit in the
 16 previous year, calculated in accordance section nine-q of this chapter,
 17 and (ii) the maximum charge which may be imposed in this state