On August 3, 2011, Governor Cuomo signed a new law which amends CPLR section 5224(a)(3) and adds subdivision 10 to section 601 and subdivision 3 to section 602 of the General Business Law. These changes are intended to reduce the burden on financial institutions that receive many information subpoenas, with or without restraining notices, against deposit accounts.
For details, see Subpoenas and Subpoenas Duces Tecum in the Adverse Claims section of The Gold Book.
The FDIC, with the other FFIEC agencies, has issued the new guidance, which describes updated supervisory expectations regarding customer authentication, layered security, and other controls in an increasingly hostile online environment. Financial institutions will be expected to comply with the guidance no later than January 1, 2012.
The Gold Book chapter addressing Authentication for Internet Banking has been updated accordingly.
In addition to the change of inactivity periods which have been updated in The Gold Book, there are a few other notable changes to the NYS Abandoned Property Laws.
To see the new Form AC2790 click here: http://www.osc.state.ny.us/ouf/forms/ac2709.pdf
A new page summarizing the reporting process has been added to The Gold Book.
Join the forum discussion on this post The Federal Reserve holiday schedule has been updated through 2015.
Join the forum discussion on this post The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) yesterday approved a final rule to implement section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The final rule revises the FDIC’s deposit insurance regulations to include non-interest bearing transaction accounts as a new temporary deposit insurance account category. All funds held in such accounts are fully insured, without limit, and this coverage is separate from, and in addition to, the coverage provided to depositors for other accounts at an insured depository institution. This separate coverage will become effective on December 31, 2010, and will end on December 31, 2012.
Non-interest bearing accounts include only traditional, non-interest bearing demand deposit (or checking) accounts that allow for an unlimited number of transfers and withdrawals at any time, whether held by a business, individual or other type of depositor.
Insured institutions are required to notify customers of these changes by December 31. 2010.
For details, see Coverage of Non-Interest Bearing Transaction Accounts in the Federal Deposit Insurance section of The Gold Book.
Join the forum discussion on this post The Federal Reserve Board recently announced the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2011. These amounts are used in the calculation of reserve requirements of depository institutions. The Board also announced the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting panels effective 2011.
See sub-chapter Reserve Requirements for updated information.
New Federal Reserve rules provide important protections for the purchase and use of gift cards. The final rules under Regulation Z that implement the Credit CARD Act of 2009, restrict the fees and expiration dates applicable to gift cards and apply to gift cards sold on or after August 22, 2010.
Content on this topic has been added to The Gold Book.
Join the forum discussion on this post Last month the IOLA Fund amended 21 NYCRR Section 7000.9(b)(1) to revise one of the IOLA interest rate options. Institutions may pay the greater of 60% of the Federal Funds Rate or 1% on IOLA’s. This is a change to one of the interest rate options an institution may choose for paying interest on IOLA’s, which are NOW accounts. The 1% is a floor rate.
This rate change is effective April 7, 2010. Go to www.IOLA.org, go to recent news on the right and go to the bottom and click on trustees regulations. There you will be able to pull up the 13 page regulation and find section 7000.9(a) and (b). The rates you may offer on IOLAs can be either under (a) or (b), your choice.
See the IOLA section of The Gold Book for updated material.
Join the forum discussion on this post On April 13, 2010, the FDIC adopted an interim final rule extending the Transaction Account Guarantee (TAG) program through December 31, 2010 for institutions participating in the program. Institutions that wish to opt out of the TAG extension must submit a request to opt out on or before April 30, 201o.
The FDIC Board of Directors has the authority to grant an additional 12-month extension of the program, through December 31, 2011, without further rulemaking, if it determines that continuing economic difficulties warrant such extension.
The maximum interest rate limit for NOW accounts guaranteed under the TAG program will be 0.25 percent, effective July 1, 2010.
Financial institutions currently participating in the TAG program should review its disclosures and modify them as necessary to ensure that they will be accurate after June 30, 2010.
This topic is further addressed in the Standard Maximum Deposit Insurance section of The Gold Book.
Join the forum discussion on this post Federal regulators released an Online Form Builder that financial institutions can download and use to develop and print customized versions of a model consumer privacy notice.
The Online Form Builder, based on the model form regulation published in the Federal Register on December 1, 2009, under the Gramm-Leach-Bliley Act, is available with several options. Easy-to-follow instructions for the form builder will guide an institution to select the version of the model form that fits its practices, such as whether the institution provides an opt-out for consumers.
To obtain a legal “safe harbor” and so satisfy the law’s disclosure requirements, institutions must follow the instructions in the model form regulation when using the Online Form Builder.
Click here for additional information including compliance requirements and dates.
Join the forum discussion on this post Powered by WordPress