N.Y. Banking Law § 676: Unauthorized withdrawals from savings or time deposit accounts

§ 676. Unauthorized withdrawals from savings or time deposit accounts.

Any withdrawal of moneys from any savings account or time deposit

account maintained in any banking organization, branch of a foreign

banking corporation, national bank, federal savings and loan association

or federal credit union located in this state which is made by means of

an unauthorized signature is wholly inoperative as to the person whose

name is signed unless such person has authorized or ratified such

withdrawal or is precluded from denying such withdrawal because he has

received a portion of the funds withdrawn, provided that in such latter

event he shall be precluded from denying such withdrawal only with

respect to the funds so received; provided, however, that such a

signature shall operate as the signature of the unauthorized signer in

favor of any such banking organization, branch of a foreign banking

corporation, national bank, federal savings and loan association or

federal credit union which has, in good faith, honored such withdrawal.

No such banking organization, branch of a foreign banking corporation,

national bank, federal savings and loan association or federal credit

union shall interpose the defense, in an action for recovery by a

depositor of money paid upon an unauthorized signature, that it has

exercised due care and diligence in ascertaining the identity of the

person to whom it has paid such money. The term "unauthorized signature"

shall have the meaning ascribed to it by section 1--201 of the uniform

commercial code and the term "savings account" shall include shares

issued by a savings and loan association, state or federally chartered,

and by a credit union, state or federally chartered.

Any waiver of the provisions of this section or any contrary

agreement, by-law, rule or regulation of any banking organization,

branch of a foreign banking corporation, national bank, federal savings

and loan association or federal credit union located in this state shall

be void as against public policy and wholly unenforceable.