Bill > S04603

This bill establishes new standards for bank account closures in New York, requiring banking organizations and out-of-state banks to provide 60 days' advance notice before closing a customer's account and specify the reason for closure. Additionally, banks must return any remaining funds to the account owner within 60 days of closing the account. These requirements apply to both personal and business accounts, though the bill includes a critical provision that these new rules are subject to federal law, meaning if federal regulations conflict with these state requirements, the federal regulations will take precedence. The bill aims to provide more transparency and protection for bank customers by ensuring they have sufficient time to understand and respond to account closures and by mandating the prompt return of their remaining funds. The new regulations would be added to the New York banking law as section 9-ii and would take effect immediately upon passage.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4603