State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-07 > 7-7-25

7-7-25. Withdrawal or transfer of savings accounts.
Any savings account holder or his authorized representative may at any time apply forwithdrawal or transfer of all or any part of his savings accounts. Such an application may be inthe form of orders or authorizations, and may be given electronically or by card, device, orotherwise, and in the case of a designated class or classes of accounts, such an order orauthorization may be negotiable, or transferable, or both negotiable and transferable. Everyapplication shall request withdrawal of a specified amount. In circumstances where emergencyconditions do not permit an association to pay in full every application for withdrawal asreceived, the commissioner may authorize a rotation system for payment of withdrawals underrules governing such a system. Subject to the provisions of Subsection 7-7-21(2)(k), butnotwithstanding any other rule or provision of law to the contrary, an association may postponepayment of all or part of the value of any savings account pursuant to a withdrawal application ofwhatever kind until 14 days following the receipt of the application by the association. This rightto postpone payment may not be waived by an association, except by actual payment prior to theexpiration of the 14-day period. In the event an association exercises its right to postponepayment under this section with respect to a transaction account item, it shall return thewithdrawal application or a copy of it to the person seeking withdrawal with a notice of itselection to exercise that right and shall notify the commissioner of the postponement. The returnand notification shall be accomplished before the close of business on the day of receipt of thewithdrawal application if the item is presented directly or before the association's midnightdeadline if presented through a collecting bank. In no event may an association voluntarily orinvoluntarily delay or postpone the whole or partial payment of the value of any savings accountunder a written withdrawal application by a savings account holder for a period exceeding 14days following the receipt of the application without first securing written permission from theFederal Deposit Insurance Corporation or successor federal deposit insurer of the association.The commissioner may prescribe, by rules consistent with federal laws and regulations governingthe same subject for federally chartered associations, the maximum penalty that may be appliedby an association for premature withdrawal from a savings account, and the conditions underwhich the penalty may be applied.

Amended by Chapter 200, 1994 General Session