Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Chapter 167D of the General Laws is hereby amended by adding the following section:-
Section 34. (a) For the purposes of this section, the following terms shall have the following meanings:
"Account", demand deposit, negotiable withdrawal order account, savings deposit, share account or other asset account;
"Banking institution", every state-chartered bank and credit union, every federally chartered bank as defined in section one, and foreign banks authorized to do business in the commonwealth; and
"Item", an item as defined in section 4-104 of chapter one hundred and six.
(b) Each banking institution, shall disclose to account holders its policy relative to the time period between the deposit of funds by means of a check, negotiable order of withdrawal or money order and the availability of such deposit for withdrawal or use as of right.
Such disclosure shall be given to a customer in writing at the time such account is opened and shall be included with any monthly or other periodic statement issued relative to each such account.
Every such banking institution shall also post in a conspicuous place in each of its offices, other than an electronic branch as defined in section one of chapter one hundred and sixty-seven B, a notice which sets forth such policy.
(c) The commissioner shall promulgate regulations, which may be amended from time to time, establishing a reasonable period of time within which a banking institution must permit a retail banking customer to draw, as of right, on an item which has been received for deposit in the customer's account. The commissioner is authorized to gather from banking institutions such information as may be required for the promulgation of the regulations required by this section.
SECTION 2. On or before the first day of June, nineteen hundred and eighty-five, the commissioner of banks shall file with the clerk of the senate and house of representatives a report containing the regulations promulgated, pursuant to section one, the policy of each banking institution relative thereto, and the degree of compliance with such regulations by such banking institutions.