Section 34 Special notice accounts - Massachusetts Statutes

Section 34. Any of the shares or deposits authorized by section thirty except club deposits, if the directors so determine, and if the share and deposit liabilities are insured in full under federal or state law, or both, may be received as special notice accounts subject to the limitations set forth in said section thirty and to the provisions of this section.

1. Special Notice Account Agreements — Any such shares or deposits shall be received subject to a written agreement between the credit union and the shareholder or depositor or joint shareholders or joint depositors which agreement shall contain the following provisions:—

(a) Except as hereinafter provided relative to dividends or interest on such shares and deposits, neither the whole nor any part of such shares or deposits may be withdrawn other than pursuant to the terms of a withdrawal notice of ninety days or more signed by such shareholder or depositor or any joint shareholder or depositor and received by such credit union. Such notice shall state that such shareholder or depositor or such joint shareholders or depositors propose to withdraw such shares and deposits in whole or in specified part during a withdrawal period commencing upon a day specified, which day shall be not less than ninety days following the receipt by the credit union of such withdrawal notice and terminating upon the expiration of the ninth day following or, if such ninth day shall be a Saturday, Sunday or legal holiday, upon the expiration of the business day next succeeding such ninth day.

(b) Any ordinary, extra or additional dividend or interest on such shares or deposits may be withdrawn pursuant to a permanent dividend or interest order signed by such shareholder or depositor or any joint shareholder or depositor and received by such credit union prior to the day upon which such dividend or interest becomes payable or pursuant to a demand made by such shareholder or depositor or any joint shareholders or depositors within one year after the day upon which such dividend or interest became payable. If not so withdrawn, no such dividend or interest shall be withdrawn except as hereinbefore provided in subparagraph (a).

2. Withdrawals — No such credit union shall permit the whole or any part of such shares or deposits or any ordinary, extra or additional interest or dividend declared thereon to be withdrawn, in whole or in part, except in accordance with the terms of such agreement.

3. Passbooks — Each passbook representing shares or deposits received under this section shall contain the title “Special Notice Account” and shall plainly set forth the phrase “90 Days’ Written Notice of Withdrawal Required”.