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This entry was published on 2014-09-22
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Preauthorized electronic fund transfers
§ 9-s. Preauthorized electronic fund transfers. 1. Every banking
institution which provides preauthorized electronic fund transfers from
consumer accounts shall, in accordance with regulations adopted by the
superintendent of financial services, provide consumers with the right
to stop payment by giving written or oral notice within a specified
period of time prior to such transfer. For purposes of this section,
"banking institution" shall mean any state or federally chartered bank,
trust company, savings bank, savings and loan association or credit
union, and "consumer account" shall mean an account used primarily for
personal, family or household purposes.

2. No agreement for preauthorized electronic fund transfers entered
into on or after January first, two thousand thirteen shall permit or
require the transfer from a consumer account of any funds as a penalty
or a final payment after the consumer has given written or oral notice
to stop payment to his or her financial institution.

3. Any banking institution which complies with the stop payment
provisions of the federal Electronic Funds Transfer Act, as such act may
be amended from time to time, and any regulations adopted pursuant
thereto, shall be deemed to be in compliance with the provisions of this