N.Y. Banking Law § 9-s: Preauthorized electronic fund transfers

§ 9-s. Preauthorized electronic fund transfers. 1. Every banking

institution which provides preauthorized electronic fund transfers from

consumer accounts shall, in accordance with regulations adopted by the

superintendent of financial services, provide consumers with the right

to stop payment by giving written or oral notice within a specified

period of time prior to such transfer. For purposes of this section,

"banking institution" shall mean any state or federally chartered bank,

trust company, savings bank, savings and loan association or credit

union, and "consumer account" shall mean an account used primarily for

personal, family or household purposes.

2. No agreement for preauthorized electronic fund transfers entered

into on or after January first, two thousand thirteen shall permit or

require the transfer from a consumer account of any funds as a penalty

or a final payment after the consumer has given written or oral notice

to stop payment to his or her financial institution.

3. Any banking institution which complies with the stop payment

provisions of the federal Electronic Funds Transfer Act, as such act may

be amended from time to time, and any regulations adopted pursuant

thereto, shall be deemed to be in compliance with the provisions of this

section.