§ 7. Payment of dividends or interest upon unclaimed deposits or shares; limitation of charges in connection with savings accounts.
249 words·~1 min read·
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§ 7. Payment of dividends or interest upon unclaimed deposits or
shares; limitation of charges in connection with savings accounts. 1. No
banking organization or foreign banking corporation transacting business
in this state shall discontinue the payment of dividends or interest on
any deposit made with such organization or corporation, or reduce the
rate at which dividends or interest is paid, solely because such deposit
is inactive or unclaimed, except that payment of dividends or interest
may be discontinued for the period following June thirtieth of the year
in which the deposit is paid to the state comptroller pursuant to
section three hundred three of the abandoned property law. A share
issued by a savings and loan association or by a credit union shall be
deemed a deposit for the purposes of this section.
2. No banking organization or foreign banking corporation transacting
business in this state shall impose any service charge on an inactive
savings account which is higher than the service charge imposed by such
organization or corporation on an active savings account; provided,
however, that a banking organization or foreign banking corporation may
impose a reasonable charge on an inactive savings account for costs
related to or incurred as a result of the payment or delivery of
abandoned property to the state comptroller pursuant to the abandoned
property law.
3. The superintendent of financial services may promulgate such
regulations as he or she deems necessary and proper to implement and
define the provisions of this section.