NY S05810

Banking organizations, foreign banks, savings and loan associations, and credit unions must offer convenience accounts when establishing joint deposit accounts with cash, securities, or other property.

Convenience accounts do not transfer ownership, create gifts of half the deposit, or grant survivorship rights to the other person upon the depositor's death.

The Superintendent of Financial Services must create rules requiring depositors to be informed of convenience account terms, conditions, and differences from joint accounts established under existing law.

Deposits in convenience accounts can be paid to either the depositor or the other person, and such payment serves as valid release to the financial institution unless written notice is received from the depositor.

The act takes effect immediately upon enactment.