Wednesday, April 21, 2021

New York Nixes Escrow Overdraft Protection

From the web page of the New York Appellate Division for the Second Judicial Department

By Joint Order dated April 7, 2021, signed by the Presiding Justices of the four Departments of the Appellate Division, Parts 1200 (Rules of Professional Conduct) and 1300 (Dishonored Check Reporting Rules) of the Appellate Division rules were amended to address the use of overdraft protection. The amendments serve to prohibit overdraft protection on special and trust accounts, as well as to require the reporting of overdrafts, “irrespective of whether the instrument is honored,” in the same manner as the reporting of dishonored checks is required. The Rules of Professional Conduct may be found, in their entirety, on the Office of Court Administration’s website.

(Mike Frisch)

https://lawprofessors.typepad.com/legal_profession/2021/04/new-york-nixes-escrow-overdraft-protection.html

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