WILLIAM DONALD SCHAEFER, Governor                    Ch. 40 5

LOAN MAY MAKE FUNDS AVAILABLE FOR THE ITEM ON A COLLECTION BASIS
IF THE DEPOSITORY SAVINGS AND LOAN NOTIFIES THE ACCOUNT HOLDER
ORALLY OR IN WRITING OF THIS ACTION WITHIN THE TIME THAT THE
DEPOSITORY SAVINGS AND LOAN OTHERWISE WOULD BE REQUIRED UNDER
REGULATIONS ADOPTED UNDER THIS SUBTITLE TO MAKE FUNDS AVAILABLE
TO THE ACCOUNT HOLDER;

(4)  A DEPOSITORY SAVINGS AND LOAN MAY FIND THAT THE
COLLECTIBILITY OF AN ITEM IS DOUBTFUL, IF:

(I)  THE DEPOSITORY SAVINGS AND LOAN HAS REASON
TO BELIEVE THAT THE MAKER, DRAWER, OR PAYOR OF THE ITEM IS
INSOLVENT;

(II)  THE ITEM CONTAINS AN INFIRMITY ON ITS
FACE, INCLUDING A FORGERY, AN ALTERATION, OR FALSE OR FRAUDULENT
INDICATION OF THE DRAWER'S, MAKER'S, OR PAYOR'S NAME OR ROUTING
NUMBER; OR

(III)  THE MANNER OF PRESENTMENT OF THE ITEM
RAISES A REASONABLE SUSPICION OF FRAUD;

(5)  FOR ANY ITEM IN EXCESS OF $2,500 MADE BY AN
ACCOUNT HOLDER IN ONE 1 BUSINESS DAY, THE AVAILABILITY OF FUNDS
FOR THE AMOUNT IN EXCESS OF $2,500 SHALL BE DETERMINED ACCORDING
TO THE SAVINGS AND LOAN ASSOCIATION'S POLICY, OR IF THE ACCOUNT
HOLDER ELECTS, ON A COLLECTION BASIS;

(6)  FOR ANY ITEM DEPOSITED BY A NEW ACCOUNT HOLDER AT
A DEPOSITORY SAVINGS AND LOAN, THE AVAILABILITY OF FUNDS FOR ANY
ITEM DEPOSITED WITHIN 90 CALENDAR DAYS OF THE OPENING OF AN
ACCOUNT BY THE ACCOUNT HOLDER SHALL BE SUBJECT TO THE SAVINGS AND
LOAN ASSOCIATION'S POLICY; AND

(7)  EXCEPT FOR ACCOUNTS WITH OVERDRAFT PROTECTION IN
WHICH THE ACCOUNT HOLDER'S CREDIT LINE HAS NOT BEEN EXCEEDED, IF
ANY ACCOUNT OR COMBINATION OF ACCOUNTS OF AN ACCOUNT HOLDER HAS
BEEN OVERDRAWN HAD ITEMS-AN ITEM RETURNED ON 3 SEPARATE OCCASIONS
BUSINESS DAYS WITHIN A 6-MONTH PERIOD, ALL ACCOUNTS OF THAT
ACCOUNT HOLDER SHALL BE SUBJECT TO THE SAVINGS AND LOAN
ASSOCIATION'S POLICY FOR A PERIOD OF 6 MONTHS AFTER THE THIRD 3RD
RETURN FOR INSUFFICIENT FUNDS.

(D) (E) THE DIVISION DIRECTOR MAY GATHER FROM SAVINGS AND
LOAN ASSOCIATIONS IN THE STATE ANY INFORMATION REQUIRED BY THE
DIVISION DIRECTOR FOR THE ADOPTION OF REGULATIONS UNDER THIS
SECTION.

(E) THE REGULATIONS ADOPTED UNDER THIS SECTION SHALL

REQUIRE EACH SAVINGS AND LOAN ASSOCIATION TO:

 (1) NOTIFY EACH HOLDER OF AN ACCOUNT IN THE

ASSOCIATION IN WRITING OF THE APPLICABLE TIME LIMITATIONS AND THE

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