7-7-25. Withdrawal or transfer of savings accounts.
Any savings account holder or his authorized representative may at any time apply for
withdrawal or transfer of all or any part of his savings accounts. Such an application may be in
the form of orders or authorizations, and may be given electronically or by card, device, or
otherwise, and in the case of a designated class or classes of accounts, such an order or
authorization may be negotiable, or transferable, or both negotiable and transferable. Every
application shall request withdrawal of a specified amount. In circumstances where emergency
conditions do not permit an association to pay in full every application for withdrawal as
received, the commissioner may authorize a rotation system for payment of withdrawals under
rules governing such a system. Subject to the provisions of Subsection 7-7-21(2)(k), but
notwithstanding any other rule or provision of law to the contrary, an association may postpone
payment of all or part of the value of any savings account pursuant to a withdrawal application of
whatever kind until 14 days following the receipt of the application by the association. This right
to postpone payment may not be waived by an association, except by actual payment prior to the
expiration of the 14-day period. In the event an association exercises its right to postpone
payment under this section with respect to a transaction account item, it shall return the
withdrawal application or a copy of it to the person seeking withdrawal with a notice of its
election to exercise that right and shall notify the commissioner of the postponement. The return
and notification shall be accomplished before the close of business on the day of receipt of the
withdrawal application if the item is presented directly or before the association's midnight
deadline if presented through a collecting bank. In no event may an association voluntarily or
involuntarily delay or postpone the whole or partial payment of the value of any savings account
under a written withdrawal application by a savings account holder for a period exceeding 14
days following the receipt of the application without first securing written permission from the
Federal Deposit Insurance Corporation or successor federal deposit insurer of the association.
The commissioner may prescribe, by rules consistent with federal laws and regulations governing
the same subject for federally chartered associations, the maximum penalty that may be applied
by an association for premature withdrawal from a savings account, and the conditions under
which the penalty may be applied.
Amended by Chapter 200, 1994 General Session
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Last revised: Thursday, May 28, 2009