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Can you summarize 3 NYCRR Part 15?
General Regulations of the Superintendent > Joint Deposits and Shares; Convenience Deposits and Shares
Short Summary
This legal document, part of the New York Codes, Rules and Regulations, governs joint accounts and convenience accounts in the banking industry. Joint accounts refer to deposits made in the name of the depositor and another person or persons, with the form of payment or delivery to any or the survivor of them. The owner of a joint account includes the depositor and any other person or persons named on the account. The document specifies that banking institutions must provide clear disclosures to joint owners regarding the terms and conditions of the account, including ownership rights, withdrawal privileges, and potential legal obligations. The depositary may release the entire account to any owner during the lifetime of all owners, honor checks or orders from any owner, and may be required to remit funds to satisfy a judgment or debt of any owner. After the death of any owner, the depositary may honor checks or orders from the survivor(s) and treat the account as the sole property of the survivor(s). Written notice is required to restrict payments or deliveries from the joint account. Convenience accounts, on the other hand, refer to deposits made in the name of the depositor and another person or persons, with the form of payment or delivery to any of them ‘for the convenience’ of the depositor, without any right of survivorship in favor of the other person or persons. The owner of a convenience account refers only to the depositor and must be clearly designated as such on the records of the depositary. The document specifies that banking institutions must inform the owner of the account’s terms and conditions, including withdrawal privileges and potential legal obligations. The depositary may honor checks or orders from the owner or other named person(s), remit funds to satisfy the owner’s judgment or debt, and make payments to the owner’s estate or designated individuals after the owner’s death. The depositary will not treat the account as the property of the other named person(s). Written notice is required to restrict payments or deliveries from the convenience account. The document also includes requirements for banking institutions to furnish written notices to owners of joint accounts and convenience accounts, which should include the necessary disclosures. Overall, this document provides definitions, requirements, and clarifications regarding joint accounts and convenience accounts in the banking industry.
Whom does it apply to?
Banking institutions referred to in section 15.1 of the New York Codes, Rules and Regulations
What does it govern?
Joint accounts and convenience accounts in the banking industry
What are exemptions?
No specific exemptions are mentioned in this document
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
New York