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December 21, 2024 Clear | 16°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 15C: Charges and cessation of interest on abandoned property

Section 15C. In connection with property heretofore or hereinafter reportable or reportable under this chapter, no holder may impose any charges in respect of dormancy or inactivity on a savings or checking account or cease payment of interest unless:—

(1) such charges and such cessation of interest are provided for in a valid, enforceable and written contract between the holder and the customer which specifies the amount of such charges and that interest will cease;

(2) the customer is notified prior to the imposition of such charges and cessation of interest; and

(3) it is not the policy of the holder to waive such charges or to restore interest. No holder shall deduct from the amount of any draft, registered check, money order, certified check, cashier's check or treasurer's check or any similar written instrument any charges imposed by reason of the failure to present such items for encashment unless such charges are provided for in a valid enforceable and written contract and it is not the policy of the holder to waive such charges.