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Banking Interpretations

September 14, 2004

Steven Barras - Response to EMail NYSBL Sec. 9-m

Section 9-m of the Banking Law requires every banking institution (as defined) which offers consumer accounts (also as defined), which can be accessed by checks or other similar written instruments, to offer a consumer account on which the cancelled checks or other similar instruments drawn on that account are returned to the customer with a periodic statement of the account. You have asked whether a "check investment" account, which, in effect, also serves to protect the account holder from overdrawing his/her checks, could serve as the consumer account that would satisfy the requirements of Section 9-m. It would appear that such an account could be used to satisfy the section 9-m requirements if all of the checks bear the account number of the underlying checking account and all checks (or substitute checks after 10/28/04) are returned to the account holder.

Department of Financial Services

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