WILLIAM DONALD SCHAEFER, Governor                   Ch. 481

LIMITATIONS AND THE ASSOCIATION'S POLICE ON THE ASSOCIATION'S

CUSTOMER'S RIGHTS TO DRAW ON ITEMS DEPOSITED TO THE CUSTOMER'S
ACCOUNT.

SECTION 2. AND BE IT FURTHER ENACTED, That:

(a) If the federal government enacts legislation, or
directs the Federal Reserve to, establish time limits within
which a financial institution is required to make funds available
for items deposited by a customer, member, or account holder of
the financial institution, and if federal legislation does not
apply to all banking institutions, credit unions, and savings and
loan associations chartered or incorporated under the laws of the
State:

(1)  The Bank Commissioner is empowered to and shall
adopt regulations for banking institutions and credit unions
chartered or incorporated under the laws of the State and not
covered by the federal legislation; and

(2)  The Director of the Division of Savings and Loan
Associations is empowered to and shall adopt regulations for
savings and loan associations chartered by the State and not
covered by the federal legislation.

(o) The regulations shall be adopted within 90 days of the
enactment of the federal legislation and shall make applicable to
the banking institutions, credit unions, and savings and loan
associations chartered or incorporated under the laws of the
State and not covered by the federal legislation, the provisions
of the federal legislation that establish time limits within
which the financial institutions are required to make funds
available for deposited items.

(c) Upon adoption of the regulations, Section 1 of this Act
shall be null and void.

SECTION 3. AND BE IT FURTHER ENACTED, That if the federal
government enacts legislation that establishes time limits within
which all financial institutions chartered or incorporated under
the laws of this State are required to make funds available for
items deposited by a customer, member, or account holder of the
financial institution, Section 1 of this Act shall be null and
void.

SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1 October 1, 1987.

Approved May 14, 1987.

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