Statute · New York Banking Law
N.Y. Banking Law § 680-e — Permissible purpose
N.Y. Banking Law § 680-e
- Type
- Statute
- Source
- New York Banking Law
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
§ 680-e. Permissible purpose. 1. A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit.
Citator
N.Y. Banking Law § 680-e — Permissible purpose is in force in the current edition of the Code, and nothing recorded condemns it.
§ 680-e. Permissible purpose. 1. A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit.
2. If, before termination of the special deposit, the bank or a court determines the special deposit no longer satisfies subdivision one of this section, sections six hundred eighty-g, six hundred eighty-h, six hundred eighty-i and six hundred eighty-j of this article cease to apply to any funds deposited in the special deposit after the special deposit ceases to satisfy subdivision one of this section.
3. If, before termination of a special deposit, the bank determines the special deposit no longer satisfies subdivision one of this section, the bank may take action it believes is necessary under the circumstances, including terminating the special deposit.