New York Codes, Rules and Regulations
Title 3 - BANKING
Legal Interpretations
LI 4 - Savings Banks and Savings and Loan Associations
Section LI 4.3 - Crediting dividends on date of deposit-date of withdrawal accounts

A savings bank inquired whether section 245(3)(b) of the Banking Law may fairly be read to allow the crediting of dividends on date of deposit--date of withdrawal (DOD/DOW) accounts during, rather than after the close of, business on the last day of the bank's regular dividend period.

The department answered in the affirmative stating that the above interpretation would not be inconsistent with the language of the statute or the intent of the Legislature so long as the bank did not view the interpretation as sanctioning grace days on DOD/DOW accounts. The department observed that grace days are not permitted on DOD/DOW accounts, and cautioned the savings bank that if it chose to avail itself of the advantages of this new interpretation, it must be careful not to violate the grace day proscription.

DATED: September 20, 1968