14-F - Power of the banking board to require the provision of basic banking services.

§ 14-f.  Power  of the banking board to require the provision of basic  banking services. 1. The legislature finds  and  declares  that  certain  consumers  residing in this state may be unable to afford, without undue  financial hardship, the  cost  of  maintaining  a  consumer  transaction  account  at  a  banking  institution  located in this state.   It is the  policy of this state  that,  consistent  with  safe  and  sound  banking  practices,  banking  institutions  make  available  lower  cost  banking  services  to  consumers.  It  is  further  intended  that   no   banking  institution  be  required to offer lower cost banking services at a cost  to account holders which is less than the actual  cost  to  the  banking  institution to provide such services.    2.  Except  as  otherwise  provided  in  this  section,  every banking  institution shall make available to  consumers  a  consumer  transaction  account,  to  be  known as a "basic banking account", with the following  features to be prescribed by the banking board by regulation:    (a) the maximum amount which a banking institution may require  as  an  initial deposit, if any;    (b)  the maximum amount a banking institution may require as a minimum  balance, if any, to maintain such account;    (c)  eight  withdrawal  transactions,  including  those  conducted  at  electronic facilities, during any periodic cycle at no additional charge  to the account holder; and    (d)  the  maximum amount a banking institution may charge per periodic  cycle for the use of such account.    3. With respect to any transactions in excess of the number  specified  in accordance with paragraph (c) of subdivision two of this section, (a)  a banking institution may impose a reasonable per-transaction charge, or  (b)  it  may  impose  the  fees  and  charges  normally applied to other  consumer transaction accounts  available  at  that  banking  institution  provided  that  any  charge per periodic cycle imposed hereunder must be  reduced by the charge imposed under paragraph (d) of subdivision two  of  this  section;  provided  however,  that  at  no time shall the fees and  charges on the basic banking account exceed the amount that is  normally  applied to other consumer transaction accounts available at that banking  institution.    4.  A  banking  institution  may require as a condition for opening or  maintaining a basic banking account, (a) that  the  holder  of  a  basic  banking  account be a resident of this state; and (b) the direct deposit  to the banking institution  of  recurring  payments  such  as,  but  not  limited  to,  social  security,  wage,  or pension payments where direct  deposit is available to both the consumer and the banking institution.    5. Except as provided in this section and any  rules  and  regulations  promulgated hereunder, a basic banking account may be offered subject to  the  same  rules,  conditions  and  terms  normally  applicable to other  consumer  transaction  accounts  offered  by  the  banking  institution;  provided  that  the  fees  and  charges for specific services other than  those otherwise provided in this section shall not exceed those  imposed  by  the  banking  institution  for  the same services in connection with  other consumer transaction accounts offered by the banking institution.    6. No banking institution shall be required to permit  any  person  to  open  or  maintain  a  basic banking account pursuant to this section if  such person maintains another consumer  transaction  account  either  at  that banking institution or any other banking institution.    7.  In  lieu  of the basic banking account required by this section, a  banking institution may make available an alternative account  or  other  banking  services  determined  by  the  superintendent to be at least as  advantageous to consumers as the basic banking account.8. Where a banking institution posts in the public area of its offices  notice of the availability of its other consumer  transaction  accounts,  it  shall  also post equally conspicuous notice in such public areas and  in the same manner the availability of its basic banking accounts. Where  a  banking  institution  makes  available  in such public areas material  describing the terms of its  other  consumer  transaction  accounts,  it  shall  also  make  comparable descriptive material available in the same  such areas and in the same manner for its basic banking account.    9. For purposes of this section:    (a) "banking institution" means any bank, trust company, savings bank,  savings and loan association, or credit union, or branch  of  a  foreign  banking  corporation  the  deposits  of which are insured by the Federal  Deposit  Insurance  Corporation,  which  is   incorporated,   chartered,  organized or licensed under the laws of this state or any other state or  the  United  States, and, in the ordinary course of its business, offers  consumer transaction accounts to the general public or, in the case of a  credit union, to its members;    (b) "consumer transaction account" means  a  demand  deposit  account,  negotiable  order  of withdrawal account, share draft account or similar  account used primarily for personal, family or household purposes.    10. For purposes of  this  section,  any  banking  insititution  which  offers  share  draft  accounts  shall  use  the  term "basic share draft  account" instead of "basic banking account".    11. If any provision of this  section,  or  the  application  of  such  provision  to  any  person  or  circumstance  shall be held invalid, the  remainder of this  section,  and  the  application  of  such  provisions  thereof  to  persons or circumstances other than those as to which it is  held invalid, shall not be affected thereby.