N.Y. Banking Law § 7: Payment of dividends or interest upon unclaimed deposits or shares; limitation of charges in connection with savings accounts

§ 7. Payment of dividends or interest upon unclaimed deposits or

shares; limitation of charges in connection with savings accounts. 1. No

banking organization or foreign banking corporation transacting business

in this state shall discontinue the payment of dividends or interest on

any deposit made with such organization or corporation, or reduce the

rate at which dividends or interest is paid, solely because such deposit

is inactive or unclaimed, except that payment of dividends or interest

may be discontinued for the period following June thirtieth of the year

in which the deposit is paid to the state comptroller pursuant to

section three hundred three of the abandoned property law. A share

issued by a savings and loan association or by a credit union shall be

deemed a deposit for the purposes of this section.

2. No banking organization or foreign banking corporation transacting

business in this state shall impose any service charge on an inactive

savings account which is higher than the service charge imposed by such

organization or corporation on an active savings account; provided,

however, that a banking organization or foreign banking corporation may

impose a reasonable charge on an inactive savings account for costs

related to or incurred as a result of the payment or delivery of

abandoned property to the state comptroller pursuant to the abandoned

property law.

3. The superintendent of financial services may promulgate such

regulations as he or she deems necessary and proper to implement and

define the provisions of this section.