§ 6-26.1-6 - Overdraft accounts. - Rhode Island Statutes

SECTION 6-26.1-6

   § 6-26.1-6  Overdraft accounts. – If credit under a credit card plan is offered and extended in connection with ademand deposit account or other transaction account maintained by the borrowerpursuant to an agreement or arrangement whereby the holder of the depositaccount agrees to honor checks, drafts or other debits to the account, which ifpaid would create or increase a negative balance in the account, by makingextensions of credit to the borrower under the credit card plan, any chargescustomarily imposed under the terms governing the demand deposit or othertransaction account in the absence of any associated credit card plan(including, without limitation, check charges, monthly maintenance charges,checkbook charges, charges for checks drawn on funds in excess of an availableline of credit and other similar charges) may continue to be imposed on theaccount without specific reference to it or incorporation of it by reference inthe agreement governing the credit card plan and the amount of the charge, tothe extent the balance in the demand deposit or other transaction account isinsufficient to pay such a charge, may be charged to the borrower's accountunder the plan as a loan under it and may be included in outstanding unpaidindebtedness in accordance with the terms of the agreement governing the creditcard plan.