2006 New York Code - Power Of The Banking Board To Prescribe A Reasonable Period Of Time Permitting The Drawing On Items Received For Deposit In A Customer\'s Account.

 
    § 14-d. Power of the banking board to prescribe a reasonable period of
  time  permitting  the  drawing  on  items  received  for  deposit  in  a
  customer's account. 1. It is the public policy of this state to  provide
  all  banking  customers with the ability to draw against items deposited
  for collection with any banking institution located in this state within
  a reasonable period of time.
    2. The banking  board  shall  promulgate  regulations,  which  may  be
  amended  from  time  to  time,  establishing a reasonable period of time
  within which a banking institution must permit  a  banking  customer  to
  draw, as of right, on an item which has been received for deposit in the
  customer's account.
    3.   The   superintendent   is   authorized  to  gather  from  banking
  institutions such information as may be required by  the  banking  board
  for the promulgation of the regulations required by this section.
    4.  (a)  Except  as  otherwise  provided  in  paragraph  (b)  of  this
  subdivision, a provision in any agreement between a banking  institution
  and its banking customer which provides for a period of time longer than
  the  period  prescribed  under  regulations promulgated pursuant to this
  section is unreasonable for purposes of  article  four  of  the  uniform
  commercial  code  and,  in  lieu  thereof,  the  maximum  period of time
  permitted in the regulation shall be deemed controlling. For  all  other
  purposes the provisions of this section shall not be deemed or construed
  to  alter or impair any right or obligation under the uniform commercial
  code.
    (b) This section does not prohibit a banking institution and a banking
  customer from agreeing in writing to a greater period of time than  that
  otherwise  prescribed  by  regulation  pursuant  to this section for the
  drawing against items because of special circumstances,  provided  that,
  such  agreement  is  not  contained  in  a pre-printed form and is not a
  usual, regular business practice of the institution.
    5. Such regulations shall require every banking institution to  notify
  each  of  its  banking  customers,  in  writing,  of the applicable time
  limitations on the right to draw on items received for  deposit  in  the
  customer's  account  and  to  keep posted in a conspicuous place at each
  branch, a notice substantially setting forth  the  generally  applicable
  time  limitations of the banking institution's customers' rights to draw
  on items deposited to their accounts.
    6. The banking board is  empowered,  upon  a  determination  that  the
  uniform  application  of  a  regulation adopted pursuant to this section
  would result in unsafe or  unsound  banking  practices,  to  issue  such
  further   regulation   or   order  with  respect  thereto  as  it  deems
  appropriate.
    7. In this section "banking institution" has the same meaning ascribed
  to it by section nine-f of this chapter and "item" has the same  meaning
  ascribed to it by the uniform commercial code.