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The 193rd General Court of the Commonwealth of Massachusetts

AN ACT RELATIVE TO CERTAIN BANKING LAWS.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:

SECTION 1. Section 47 of chapter 167 of the General Laws is hereby repealed.

SECTION 2. Section 2 of chapter 167D, as appearing in the 2008 Official Edition, is hereby amended by striking out subparagraph 1 and inserting in place thereof the following subparagraph:-

1. To receive deposits as authorized by this chapter and to receive demand, time and other types of deposits upon such terms and conditions as may be agreed upon between the depositor and the bank; provided, however, that a natural person 18 years of age or under or 65 years of age or older may choose 1 demand deposit account and 1 savings account which, in each instance, shall include a joint account in which the spouse of the eligible depositor, regardless of age, is the joint tenant therein or the joint tenant would otherwise be an eligible depositor, and which has been established and used for personal, family or household purposes, upon which no service, maintenance or other similar charge shall be imposed. No such account shall be subject to: (i) a minimum balance requirement; (ii) a charge for a deposit or withdrawal; or (iii) a fee for the initial order or subsequent refills of the basic line of checks offered by the bank, which shall include the name of the depositor. For the purposes of this subparagraph, the term “savings account” shall include a regular passbook, regular statement savings or regular NOW account, so-called. A savings account in trust for another person shall be covered by the notice, services, fee and charge provisions of this subparagraph only if the trustee is a person 18 years of age or under or 65 years of age or older. A consumer shall notify a bank of his eligibility for such accounts and provide proof of age in a form acceptable to the bank. A bank may, however, assess a fee for certain services in accordance with the bank’s published service charge schedule which shall include, stop payment orders, wire transfers, certified or bank checks, money orders, deposit items returned, transactions at electronic branches and through other electronic devices a reasonable charge, as determined by the commissioner, against any such account when payment on a check or other transaction on the account has been refused because of insufficient funds or paid despite insufficient funds. A bank shall post in each of its banking offices a notice informing consumers of the availability of the banking services prescribed by this subparagraph. A bank shall, in addition to the notice posting requirement, disclose annually to all depositors, in a manner of its choosing, the provisions of this subparagraph applicable to a person 18 years of age or younger or 65 years of age or older. For the purposes of this subparagraph, the term “check or other transaction” shall include, but not be limited to, a check for purposes of the Check Clearing for the 21st Century Act, 12 USC Sec. 5001 et seq., an electronic funds transfer as defined in section 1 of chapter 167B or regulations thereunder or a transaction processed by an automated clearinghouse.

Approved August 4, 2010