N.Y. Banking Law § 678: Accounts for convenience only

§ 678. Accounts for convenience only. 1. When a deposit of cash,

securities or other property has been made, or shares shall be issued in

or with any banking organization or foreign banking corporation

transacting business in this state, in an account established after the

effective date of this section, in the name of a depositor and another

person and in form to be paid or delivered to either "for the

convenience" of the depositor, the making of such deposit or the

issuance of such shares shall not affect the title to such deposit or

shares and the depositor shall not be considered to have made a gift of

one-half the deposit or of any additions or accruals thereon to the

other person, and, on the death of the depositor, the other person shall

have no right of survivorship in the account. If an addition is made to

such an account by anyone other than the depositor, such an addition and

accruals thereon shall be considered to have been made by the depositor.

Such deposit or shares, together with all additions and accruals

thereon, may be paid or delivered to the depositor or the other person,

and such payment or delivery and the receipt or acquittance of the one

to whom such payment or delivery is made, shall be a valid and

sufficient release and discharge to the banking organization or foreign

banking corporation prior to the receipt by the banking organization or

foreign banking corporation of notice in writing signed by the depositor

not to pay or deliver such deposit or shares and the additions and

accruals thereon in accordance with the terms thereof, and after receipt

of any such notice, the banking organization or foreign banking

corporation may require the receipt or acquittance of the depositor for

any further payments or delivery. If the depositor is dead, such payment

or delivery to the other person shall be a valid and sufficient release

to the banking organization or foreign banking corporation prior to the

receipt by the banking organization or foreign banking corporation of

written notice of the depositor's death. A banking organization or

foreign banking corporation which, upon the death of the depositor and

prior to service upon it of a restraining order, injunction or other

appropriate process from a court of competent jurisdiction prohibiting

payment, makes payment to the executor, administrator or other qualified

representative of the deceased depositor's estate, shall, to the extent

of such payment, be released from liability to any person claiming a

right to the funds and the receipt or acquittance of the executor,

administrator or qualified representative to whom payment is made shall

be a valid and sufficient release and discharge of the financial

institution.

2. The superintendent of financial services shall promulgate and may

from time to time amend rules and regulations which require that a

depositor who requests the establishment of an account in the name of

the depositor and another person "for the convenience" of the depositor

be informed of the terms and conditions of the account described in

subdivision one of this section, including the relationship and

consequences between the parties in such an account, the difference

between such an account and a joint account established under section

six hundred seventy-five of this article, and the responsibilities of

the institution with which such an account is established. This

subdivision or any rule or regulation thereunder shall not be deemed or

construed as increasing or diminishing the rights or liability of any

person, or other entity.