§ 14-d. Power of the superintendent of financial services to prescribe\na reasonable period of time permitting the drawing on items received for\ndeposit in a customer's account. 1. It is the public policy of this\nstate to provide all banking customers with the ability to draw against\nitems deposited for collection with any banking institution located in\nthis state within a reasonable period of time.\n 2. The superintendent of financial services shall promulgate\nregulations, which may be amended from time to time, establishing a\nreasonable period of time within which a banking institution must permit\na banking customer to draw, as of right, on an item which has been\nreceived for deposit in the customer's account.\n 3. The superintendent is authorized to gather from banking\ninstitutions such information as may be required by the superintendent\nof financial services for the promulgation of the regulations required\nby this section.\n 4. (a) Except as otherwise provided in paragraph (b) of this\nsubdivision, a provision in any agreement between a banking institution\nand its banking customer which provides for a period of time longer than\nthe period prescribed under regulations promulgated pursuant to this\nsection is unreasonable for purposes of article four of the uniform\ncommercial code and, in lieu thereof, the maximum period of time\npermitted in the regulation shall be deemed controlling. For all other\npurposes the provisions of this section shall not be deemed or construed\nto alter or impair any right or obligation under the uniform commercial\ncode.\n (b) This section does not prohibit a banking institution and a banking\ncustomer from agreeing in writing to a greater period of time than that\notherwise prescribed by regulation pursuant to this section for the\ndrawing against items because of special circumstances, provided that,\nsuch agreement is not contained in a pre-printed form and is not a\nusual, regular business practice of the institution.\n 5. Such regulations shall require every banking institution to notify\neach of its banking customers, in writing, of the applicable time\nlimitations on the right to draw on items received for deposit in the\ncustomer's account and to keep posted in a conspicuous place at each\nbranch, a notice substantially setting forth the generally applicable\ntime limitations of the banking institution's customers' rights to draw\non items deposited to their accounts.\n 6. The superintendent of financial services is empowered, upon a\ndetermination that the uniform application of a regulation adopted\npursuant to this section would result in unsafe or unsound banking\npractices, to issue such further regulation or order with respect\nthereto as it deems appropriate.\n 7. In this section "banking institution" has the same meaning ascribed\nto it by section nine-f of this chapter and "item" has the same meaning\nascribed to it by the uniform commercial code.\n
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