Section 2. (a) Before an account is opened, a financial institution shall disclose information on accounts to a consumer in a written statement which the consumer may retain. The commissioner shall promulgate rules and regulations prescribing the form, content and distribution of such information and the information to be disclosed which shall include but not be limited to the following: disclosure of the annual rate of simple interest; the effective annual yield; the formula used in calculating interest; the frequency of compounding and crediting of interest; date on which a deposit begins to earn interest; any delay in crediting a deposited instrument; grace periods for deposits and withdrawals; the minimum balance required to earn interest; the method of determining the balance on which interest is paid; the minimum length of time funds must remain on deposit to earn interest; any fees levied on inactive accounts; any charges, penalties or other conditions imposed upon withdrawals; any penalties for the closing of an account before a specific date; any other fees, charges or penalties; and the method by which a consumer shall be notified of any changes to any of these items.
(b) In addition to the disclosures required under paragraph (a) the commissioner shall promulgate such rules and regulations prescribing information to be disclosed by a financial institution on any account which is a term deposit account, which regulations shall include but not be limited to the following:
(1) the minimum and maximum length of the term; (2) a description of the penalties, if any, for withdrawal prior to the minimum maturity date; (3) the method and timing of any notice of the approaching maturity date of such account; (4) an explanation of the action that the financial institution will take on such account if no instructions are received from the account holder by the maturity date of any established period thereafter; (5) for any such account which merchandise is given instead of interest a financial institution shall disclose the amount of interest that would be earned on such account and the usual selling price of the merchandise at principal outlets in the financial institution’s area which do not do business on a discount basis.
(c) Any regulation, or any amendment or repeal of any such regulation shall, after compliance with all applicable provisions of chapter thirty A of the General Laws, be filed with the clerk of the house of representatives. Said clerk shall transmit a copy of such regulation, amendment or repeal to the joint committee on banks and banking. Notwithstanding any law to the contrary, such regulation, amendment or repeal shall not take effect until ninety days after such filing with said clerk.