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Pennsylvania Code (Last Updated: April 5, 2016) |
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Title 10. BANKING AND SECURITIES |
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PART II. Bureau of Banks |
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Chapter 30. Negotiable Order of Withdrawal Accounts |
Section 30.2. Rules governing NOW accounts
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A savings bank may permit the withdrawal of deposits by means of a NOW, subject to the following terms and conditions:
(1) Savings banks may pay interest on accounts which are subject to withdrawal of funds by means of a NOW only as provided by Federal statute or regulation.
(2) Savings banks shall issue monthly statements to depositors who have a NOW account for any month in which there has been any activity on such account.
(3) Each new NOW account contract entered into between a savings bank and a depositor shall contain the following statement, conspicuously placed thereon:
NOTICE UNDER PENNSYLVANIA LAW (NAME OF SAVINGS BANK) RESERVES THE RIGHT TO REQUIRE NOT LESS THAN 14 DAYS’ PRIOR WITHDRAWAL NOTICE BEFORE PAYING REQUESTS FOR WITHDRAWAL FROM NOW ACCOUNTS.
The provisions of this § 30.2 amended August 14, 1981, effective August 15, 1981, 11 Pa.B. 2847. Immediately preceding text appears at serial page (53080).
Notation
The Secretary of Banking is authorized to issue regulations requiring the notation on a NOW draft that the savings bank may require 14 days’ notice before paying it. Pennsylvania Bankers Association v. Secretary of Banking, 379 A.2d 1062 (Pa. Cmwlth. 1977).