Bill > A05031

This bill establishes new standards for bank account closures in New York, requiring banking organizations and out-of-state banks to provide specific protections to account holders. Under the proposed law, when a bank decides to close a customer's account (whether for personal or business use), they must provide 60 days' advance notice that explains the reason for the closure and return any remaining funds to the account owner within 60 days after the account is closed. The bill includes an important caveat that these requirements do not override federal banking regulations, meaning if federal law conflicts with these provisions, the federal law will take precedence. The new requirements aim to give bank customers more transparency and time to prepare when their accounts are being terminated, potentially helping individuals and businesses avoid sudden financial disruption.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A5031