N.Y. BNK Law § 680-K

§ 680-k. Duties and liability of bank. 1. A bank does not have a\nfiduciary duty to any person with respect to a special deposit.\n 2. When the bank holding a special deposit becomes obligated to pay a\nbeneficiary, a debtor-creditor relationship arises between the bank and\nbeneficiary.\n 3. The bank holding a special deposit has a duty to a beneficiary to\ncomply with the account agreement and this article.\n 4. If the bank holding a special deposit does not comply with the\naccount agreement or this article, the bank is liable to a depositor or\nbeneficiary only for damages proximately caused by the noncompliance.\nExcept as provided by other law of this state, the bank is not liable\nfor consequential, special, or punitive damages.\n 5. The bank holding a special deposit may rely on records presented in\ncompliance with the account agreement to determine whether the bank is\nobligated to pay a beneficiary.\n 6. If the account agreement requires payment on presentation of a\nrecord, the bank shall determine within a reasonable time whether the\nrecord is sufficient to require payment. If the agreement requires\naction by the bank on presentation of a record, the bank is not liable\nfor relying in good faith on the genuineness of the record if the record\nappears on its face to be genuine.\n 7. Unless the account agreement provides otherwise, the bank is not\nrequired to determine whether a permissible purpose stated in the\nagreement continues to exist.\n