PRINTER'S NO. 1619
No. 1288 Session of 1980
INTRODUCED BY MESSINGER, KUSSE, SCANLON, O'CONNELL, ROMANELLI,
LYNCH, SCHAEFER, HANKINS AND PRICE, MARCH 10, 1980
REFERRED TO BUSINESS AND COMMERCE, MARCH 10, 1980
AN ACT
1 Amending the act of December 14, 1967 (P.L.746, No.345),
2 entitled "An act relating to and regulating the business of
3 savings associations heretofore designated under other acts
4 and special charters variously as building and loan
5 associations and savings and loan associations; defining the
6 rights, powers, duties, liabilities, and immunities of such
7 associations; affecting persons engaged in the business of
8 savings associations; affecting the members, account holders
9 and borrowers of such associations; affecting Federal savings
10 and loan associations whose principal office is located in
11 the Commonwealth; prohibiting the transaction of business in
12 this Commonwealth by foreign savings associations; conferring
13 powers and imposing duties on certain departments and
14 officers of the Commonwealth and on the courts, recorders of
15 deeds; creating a Savings Association Board and defining its
16 powers and duties; prohibiting certain actions and imposing
17 penalties, and repealing certain acts," providing changes in
18 withdrawal of accounts and providing for Negotiable Orders of
19 Withdrawal.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Subsection (a) of section 804 and section 813,
23 act of December 14, 1967 (P.L.746, No.345), known as the
24 "Savings Association Code of 1967," amended August 1, 1969
25 (P.L.208, No.84), are amended to read:
26 Section 804. Types of Savings Contracts.--(a) An
1 association may make any type of savings account contract
2 including a savings deposit account and an optional type savings
3 account subject to withdrawal by a Negotiable Order of
4 Withdrawal. Savings deposit accounts shall be issued in
5 accordance with such regulations as the department shall
6 prescribe. No type of account may be created by any association
7 which imposes fines as penalties for late payment or nonpayment
8 for a period of longer than six months. The resolution of the
9 board creating the account may provide for transfer of the
10 account at the termination of this period to another type of
11 account.
12 * * *
13 Section 813. Withdrawals from Savings Accounts.--[(a)] Any
14 savings account member may at any time [present a written
15 application for withdrawal of] withdraw all or any part of his
16 savings account. [except to the extent the same may be pledged
17 to the association. The association may pay in full each and
18 every withdrawal request as presented and without requiring that
19 written application therefor be made or the association may
20 elect to number, date and file in the order of actual receipt
21 every withdrawal application and to pay such requests out of its
22 net receipts. No withdrawal application shall be required for
23 Christmas club or other special accounts received by an
24 association for a limited period not exceeding fifteen months
25 and set up for payment at the time of opening the account. An
26 application for withdrawal may be cancelled in whole or in part
27 at any time by a member.] An optional type savings account may
28 be subject to withdrawal by a Negotiable Order of Withdrawal.
29 [(b) So long as there are unpaid withdrawals not less than
30 one-half of the net receipts of an association in any month
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1 shall be applied to the payment of withdrawal applications. By
2 the term "net receipts" is meant the cash receipts of the
3 association as loan repayments, interest and investments in
4 savings accounts, less disbursements for all expenses necessary
5 and incidental for the association in carrying on its business.
6 (c) Whenever the net receipts so made applicable to
7 withdrawal applications on file for a particular month are not
8 sufficient to pay such applications in full the applications on
9 file shall be paid out of such net receipts on a pro rata basis.
10 The directors may, however, fix a maximum amount not exceeding
11 two hundred fifty dollars ($250) to be paid upon any one
12 application during any one month without the requirement of
13 proration. No association can obligate itself to pay withdrawals
14 on any plan other than that set forth above.
15 (d) The department may invoke a uniform limitation on the
16 amounts withdrawable from savings accounts of associations
17 during any period when such limitation is necessary in the
18 public interest.
19 (e) Effect of withdrawal applications:
20 (1) When an association has applications for withdrawal
21 which have not been paid for a period in excess of thirty days
22 said association shall make no further loans on the security of
23 savings accounts until all requests for withdrawals are being
24 paid within thirty days of the receipt of notice of withdrawal.
25 (2) The membership of a savings account holder who has filed
26 an application for withdrawal shall remain unimpaired so long as
27 any withdrawal value remains to his credit on the books of the
28 association.]
29 Section 2. This act shall take effect on the date that any
30 Federally chartered savings association with its main office in
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1 Pennsylvania is permitted to offer a savings account subject to
2 withdrawal by a Negotiable Order of Withdrawal.
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