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Bill > S1477
NJ S1477
NJ S1477Requires State-chartered financial institutions to increase minimum reserve balances by five times amount of previous year's losses relating to fraud and theft.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill requires State-chartered financial institutions to maintain, in addition to any amount of reserve or minimum capital already required of the institution by law or regulation, a reserve balance in an amount of at least five times the total value of the thefts, cyber thefts, fraud, and robberies reported to the institution in the previous year plus any related damages. In addition, the bill requires financial institutions to conduct an audit of the losses sustained by the institution over the previous year and to report the findings of the audit to the Commissioner of Banking and Insurance. The purpose of the audit and report is to verify that each financial institution has enough reserve balance to return customers' lost or stolen money while the institution investigates and recovers the lost or stolen money.
AI Summary
This bill requires financial institutions chartered in the state, such as banks and credit unions, to hold a significantly larger reserve balance, specifically five times the total amount of losses they experienced in the previous year due to theft, cyber theft, fraud, and robbery, including any associated damages. To ensure compliance and customer protection, these institutions must also conduct an annual audit of these losses and report the findings to the Commissioner of Banking and Insurance, who will oversee the process to confirm that institutions have sufficient funds to reimburse customers for lost or stolen money while investigations and recovery efforts are underway. This new requirement will take effect one year after the bill is enacted.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1477 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1477_I1.HTM |
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