§ 9-S — Preauthorized electronic fund transfers

§ 9-s. Preauthorized electronic fund transfers. 1. Every banking\ninstitution which provides preauthorized electronic fund transfers from\nconsumer accounts shall, in accordance with regulations adopted by the\nsuperintendent of financial services, provide consumers with the right\nto stop payment by giving written or oral notice within a specified\nperiod of time prior to such transfer. For purposes of this section,\n"banking institution" shall mean any state or federally chartered bank,\ntrust company, savings bank, savings and loan association or credit\nunion, and "consumer account" shall mean an account used primarily for\npersonal, family or household purposes.\n 2. No agreement for preauthorized electronic fund transfers entered\ninto on or after January first, two thousand thirteen shall permit or\nrequire the transfer from a consumer account of any funds as a penalty\nor a final payment after the consumer has given written or oral notice\nto stop payment to his or her financial institution.\n 3. Any banking institution which complies with the stop payment\nprovisions of the federal Electronic Funds Transfer Act, as such act may\nbe amended from time to time, and any regulations adopted pursuant\nthereto, shall be deemed to be in compliance with the provisions of this\nsection.\n