N.Y. Banking Law Section 680-E
Permissible purpose


1.

A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit.

2.

If, before termination of the special deposit, the bank or a court determines the special deposit no longer satisfies subdivision one of this section, sections six hundred eighty-g, six hundred eighty-h, six hundred eighty-i and six hundred eighty-j of this article cease to apply to any funds deposited in the special deposit after the special deposit ceases to satisfy subdivision one of this section.

3.

If, before termination of a special deposit, the bank determines the special deposit no longer satisfies subdivision one of this section, the bank may take action it believes is necessary under the circumstances, including terminating the special deposit. * NB Effective January 1, 2026

Source: Section 680-E — Permissible purpose, https://www.­nysenate.­gov/legislation/laws/BNK/680-E (updated Dec. 12, 2025; accessed Dec. 13, 2025).

Verified:
Dec. 13, 2025

Last modified:
Dec. 12, 2025

§ 680-E. Permissible purpose's source at nysenate​.gov

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