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General Laws

Section 16. All deposits in any bank may be withdrawn at such time and in such manner as the by-laws direct. The treasurer or other authorized officer of any bank may, at any time, require a depositor to give a written notice, not exceeding ninety days, of his intention to withdraw the whole or any part of any deposit other than a demand deposit loan secured by any such deposit. Whenever said notice is required from depositors on any one day, such bank shall be deemed to have made a general requirement and shall file with the commissioner, within forty-eight hours thereafter, a written notice thereof. Until such general requirement has been removed and notice thereof filed with the commissioner, no payment by way of withdrawal or loan shall be made to any such depositor on account of any such deposit, except that, with the approval of the commissioner, such sum or sums not exceeding, in the aggregate, an amount fixed by the board may be so paid to each such depositor.

Whenever in the judgment of the board there is an unusual demand by such depositors for withdrawals the bank may, with the approval of the commissioner, and whenever in the opinion of the commissioner there is such an unusual demand the bank shall upon his order, require such a depositor to give written notice of his intention to withdraw the whole or any part of such deposits or to apply for a loan secured by such deposit, such notice to be for such period not exceeding six months, as may be determined by the commissioner, which period may, in his discretion, be extended but not beyond one year from the date of notice, and until such a requirement has been revoked by the commissioner, the foregoing limitations as to payments by way of withdrawal or loan applicable in case of a general requirement as aforesaid shall apply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.

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