PA 08-5—SB 114

Banks Committee

AN ACT CONCERNING PREVENTION OF FRAUD IN ELECTRONIC TRANSACTIONS

SUMMARY: Federal law requires banks and Connecticut and federal credit unions to make funds available in accordance with the Expedited Funds Availability Act. State law specifies that the act applies to savings accounts but not to accounts whose funds are payable on a certain date or at the end of a specified time period (e. g. , certificates of deposit). This act extends the exclusion to savings accounts that are opened or funded electronically.

EFFECTIVE DATE: October 1, 2008

BACKGROUND

Expedited Funds Availability Act of 1987

The Expedited Funds Availability Act requires depository institutions to (1) make funds deposited into transaction accounts available on a uniform time schedule and (2) provide disclosures about the availability of funds. It does not apply to savings accounts.

OLR Tracking: SC: KM: SS: TS