§ 1541 Industrial Bank Deposit Rules

This law says an industrial bank can offer deposits that let you take the money out early, but it cannot offer deposits that let you take the money out any time you want.

Key Takeaways

•Industrial banks may accept deposits that can be redeemed before their maturity date.
•They are prohibited from accepting demand deposits, which are withdrawable at any time.
•The rule only applies unless the commissioner issues a different order or regulation.

Example

A person wants to put savings into an account that lets them pull cash whenever they need it, like a checking account.

The bank can’t let the person withdraw money on demand; it can only offer special accounts that have a set maturity but allow early redemption.

Subject to any order or regulation of the commissioner, an industrial bank may accept deposits evidenced by a deposit account or by certificates, that are redeemable prior to their stated maturity, but may not accept demand deposits. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law says an industrial bank can offer deposits that let you take the money out early, but it cannot offer deposits that let you take the money out any time you want.

Key Takeaways

•Industrial banks may accept deposits that can be redeemed before their maturity date.
•They are prohibited from accepting demand deposits, which are withdrawable at any time.
•The rule only applies unless the commissioner issues a different order or regulation.

Example

A person wants to put savings into an account that lets them pull cash whenever they need it, like a checking account.

The bank can’t let the person withdraw money on demand; it can only offer special accounts that have a set maturity but allow early redemption.

Key Takeaways

Example

Key Terms

References

§ 1541 Industrial Bank Deposit Rules

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References