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The 193rd General Court of the Commonwealth of Massachusetts

Section 13: Unusual demand by depositors for withdrawals; notice of intention to withdraw deposit or to apply for loan secured by deposit

Section 13. If, in the judgment of the board, there is an unusual demand by depositors for withdrawals the bank may, with the approval of the commissioner, require such a depositor to give written notice of the depositor's intention to withdraw the whole or any part of such deposits or to apply for a loan secured by such deposit. If, in the opinion of the commissioner, there is an unusual demand by depositors for withdrawals, the bank shall upon the commissioner's order require such a depositor to give written notice of the depositor's intention to withdraw the whole or any part of such deposits or to apply for a loan secured by such deposit. Such notice shall be for a period not exceeding 6 months, as may be determined by the commissioner. Said period may, in the commissioner's discretion, be extended up to 1 year from the date of notice. Until the notice requirement has been revoked by the commissioner, the foregoing limitations as to payments by way of withdrawal or loan applicable in case of a general requirement shall apply to such deposits.

Such bank shall not advertise for such deposits in newspapers, by posters or other written solicitation, while any requirement of notice of intention to withdraw is in effect, unless the advertisement shall contain, in type not smaller than the largest type thereof, a statement that such deposits may not be paid out, by way of withdrawal or loan, except in accordance with the terms of the requirement, which terms shall be set forth in such statement.