§ 14-F — Power of the superintendent of financial services to require the provision of basic banking services

§ 14-f. Power of the superintendent of financial services to require\nthe provision of basic banking services. 1. The legislature finds and\ndeclares that certain consumers residing in this state may be unable to\nafford, without undue financial hardship, the cost of maintaining a\nconsumer transaction account at a banking institution located in this\nstate. It is the policy of this state that, consistent with safe and\nsound banking practices, banking institutions make available lower cost\nbanking services to consumers. It is further intended that no banking\ninstitution be required to offer lower cost banking services at a cost\nto account holders which is less than the actual cost to the banking\ninstitution to provide such services.\n 2. Except as otherwise provided in this section, every banking\ninstitution shall make available to consumers a consumer transaction\naccount, to be known as a "basic banking account", with the following\nfeatures to be prescribed by the superintendent of financial services by\nregulation:\n (a) the maximum amount which a banking institution may require as an\ninitial deposit, if any;\n (b) the maximum amount a banking institution may require as a minimum\nbalance, if any, to maintain such account;\n (c) eight withdrawal transactions for account holders under sixty-five\nyears of age, and twelve withdrawal transactions for account holders\nsixty-five years of age or older, including those conducted at\nelectronic facilities, during any periodic cycle at no additional charge\nto the account holder; and\n (d) the maximum amount a banking institution may charge per periodic\ncycle for the use of such account.\n 3. With respect to any transactions in excess of the number specified\nin accordance with paragraph (c) of subdivision two of this section, (a)\na banking institution may impose a reasonable per-transaction charge, or\n(b) it may impose the fees and charges normally applied to other\nconsumer transaction accounts available at that banking institution\nprovided that any charge per periodic cycle imposed hereunder must be\nreduced by the charge imposed under paragraph (d) of subdivision two of\nthis section; provided however, that at no time shall the fees and\ncharges on the basic banking account exceed the amount that is normally\napplied to other consumer transaction accounts available at that banking\ninstitution.\n 4. A banking institution may require as a condition for opening or\nmaintaining a basic banking account, (a) that the holder of a basic\nbanking account be a resident of this state; and (b) the direct deposit\nto the banking institution of recurring payments such as, but not\nlimited to, social security, wage, or pension payments where direct\ndeposit is available to both the consumer and the banking institution.\n 5. Except as provided in this section and any rules and regulations\npromulgated hereunder, a basic banking account may be offered subject to\nthe same rules, conditions and terms normally applicable to other\nconsumer transaction accounts offered by the banking institution;\nprovided that the fees and charges for specific services other than\nthose otherwise provided in this section shall not exceed those imposed\nby the banking institution for the same services in connection with\nother consumer transaction accounts offered by the banking institution.\n 6. No banking institution shall be required to permit any person to\nopen or maintain a basic banking account pursuant to this section if\nsuch person maintains another consumer transaction account either at\nthat banking institution or any other banking institution.\n 7. In lieu of the basic banking account required by this section, a\nbanking institution may make available an alternative account or other\nbanking services determined by the superintendent to be at least as\nadvantageous to consumers as the basic banking account.\n 8. (a) Where a banking institution posts in the public area of its\noffices notice of the availability of its other consumer transaction\naccounts, it shall also post equally conspicuous notice in such public\nareas and in the same manner the availability of its basic banking\naccounts. Where a banking institution makes available in such public\nareas material describing the terms of its other consumer transaction\naccounts, it shall also make comparable descriptive material available\nin the same such areas and in the same manner for its basic banking\naccount.\n (b) Where a banking institution posts in the public area of its\noffices the notices for information required in paragraph (a) of this\nsubdivision, it shall also post equally conspicuous notice in such\npublic areas and in the same manner, of the department's toll free\nconsumer's hotline telephone number, where consumers can file complaints\nif a consumer is not satisfied with the services a banking institution\nprovides.\n 9. For purposes of this section:\n (a) "banking institution" means any bank, trust company, savings bank,\nsavings and loan association, or credit union, or branch of a foreign\nbanking corporation the deposits of which are insured by the Federal\nDeposit Insurance Corporation, which is incorporated, chartered,\norganized or licensed under the laws of this state or any other state or\nthe United States, and, in the ordinary course of its business, offers\nconsumer transaction accounts to the general public or, in the case of a\ncredit union, to its members;\n (b) "consumer transaction account" means a demand deposit account,\nnegotiable order of withdrawal account, share draft account or similar\naccount used primarily for personal, family or household purposes.\n 10. For purposes of this section, any banking insititution which\noffers share draft accounts shall use the term "basic share draft\naccount" instead of "basic banking account".\n 11. If any provision of this section, or the application of such\nprovision to any person or circumstance shall be held invalid, the\nremainder of this section, and the application of such provisions\nthereof to persons or circumstances other than those as to which it is\nheld invalid, shall not be affected thereby.\n