N.Y. Banking Law Section 9-G
Right of set off


1.

(a) No banking institution shall assert, claim or exercise any right of set off against any deposit account into which social security or supplemental security income payments are deposited pursuant to an agreement with such banking institution which provides that such payments be deposited directly into such deposit account without presentation to the depositor at the time of deposit.

(b)

No banking institution shall assert, claim or exercise any right of set off against any payments referred to in subdivision (p) of Civil Practice Law & Rules Law § 5205 (Personal property exempt from application to the satisfaction of money judgments)section fifty-two hundred five of the civil practice law and rules.

2.

No banking institution shall assert, claim or exercise any right of set off against any other deposit account held by such banking institution unless, prior to or on the same business day of such action, notice of the set off together with the reasons for the set off are mailed to the depositor.

3.

Failure to provide the notice required by this section shall not be deemed to affect the validity of the right of set off.

4.

“Banking institution” as used in this section shall have the same meaning as used in section nine-f of this chapter.

5.

“Depositor” as used in this section shall include shareholders in state and federal savings and loan associations and state and federal credit unions.

6.

“Deposit account” as used in this section shall include shares and share accounts of state and federal savings and loan associations and state and federal credit unions.

7.

If any provision of this section, or the application of such provision to any bank, trust company, national bank, savings bank, federal mutual savings bank, savings and loan association, federal savings and loan association, credit union, federal credit union or branch of a foreign banking corporation, shall be held invalid, the remainder of this section, and the application of such section to banks, trust companies, national banks, savings banks, federal mutual savings banks, savings and loan associations, federal savings and loan associations, credit unions, federal credit unions or branches of foreign banking corporations other than those to which it is held invalid, shall not be affected thereby.

Source: Section 9-G — Right of set off, https://www.­nysenate.­gov/legislation/laws/BNK/9-G (updated Sep. 22, 2014; accessed Oct. 26, 2024).

1
Short title
2
Definitions
2‑A
Limited liability investment company
2‑B
Limited liability trust companies
4
Information to be given to social services officials, state department of social services, state department of mental hygiene, the mental...
4‑A
Banks to display signs
4‑B
Advertising
4‑C
Exemptions from certain provisions of chapter
5
Loans pursuant to the "Servicemen’s Readjustment Act of 1944
6
Investment in obligations of housing corporations indirectly guaranteed pursuant to the “Servicemen’s Readjustment Act of 1944”
6‑A
Investment in obligations of certain persons sixty-five years of age or over incurred to satisfy real property tax indebtedness
6‑C
Application forms to be made available
6‑D
Requirement to state in writing reason for denial of mortgage loan
6‑E
Graduated payment mortgages authorized
6‑F
Alternative mortgage instruments made by banks, trust companies, savings banks, savings and loan associations and credit unions
6‑G
Override of certain provisions of United States Public Law 97-320
6‑H
Reverse mortgage loans authorized
6‑I
Mortgage loans
6‑J
Proof of insurance
6‑K
Real property insurance escrow accounts
6‑L
High-cost home loans
6‑M
Subprime home loans
6‑N
Responsibility of banks for mortgages being processed for modification
6‑O
Single point of contact for modifying delinquent home loans
6‑O*2
Reverse cooperative apartment unit loans for persons sixty-two years of age or older
6‑P
Loan counseling for mortgages guaranteed by the Servicemen’s Readjustment Act of 1944
7
Payment of dividends or interest upon unclaimed deposits or shares
8
Deposits by custodian designated by administrator of veterans’ affairs, or by person certified by social security administration
9
Checks drawn against corporate funds or payable to corporations
9‑A
Defense of ultra vires
9‑B
Actions or special proceedings by superintendent or attorney-general
9‑C
Superintendent’s or attorney-general’s action for judicial dissolution
9‑D
Enforcement of section two hundred ninety-six-a of the executive law
9‑F
Geographic discrimination in making mortgage loans prohibited
9‑G
Right of set off
9‑H
Imposition of service charges prohibited
9‑I
Close-out fees prohibited in certain cases
9‑I*2
Prohibition on depositor of early withdrawal penalty in certain cases
9‑J
Disposal of records
9‑K
Sale of education loans
9‑M
Return of checks
9‑N
Trust accounts
9‑O
Mortgage loans
9‑P
Acceptance of certain checks for deposit
9‑R
Geographic restrictions
9‑S
Preauthorized electronic fund transfers
9‑T
Unsolicited mail-loan checks
9‑U
ATM transactions by persons using foreign bank accounts
9‑V
Savings promotion prize giveaway
9‑W
Standard financial aid award letter
9‑X
Mortgage forbearance
9‑X*2
Fees based on inactivity
9‑Y
Order of payment of checks and other debits, insufficient funds charges and return deposit item charges
9‑Z
Cashing of certain checks

Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 9-G’s source at nysenate​.gov

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