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Can you summarize MNST 47.77?
FINANCIAL CORPORATIONS > TRANSFER OF ACCOUNTS PROHIBITED; NOTICE ON CLOSING.
Short Summary
This legal document governs the transfer and closure of deposit accounts by financial institutions. According to the document, a financial institution is prohibited from initiating a transfer of a deposit account to another account with different identification information without sending at least 30 days’ prior notice to at least one of the deposit account holders. If the new account has different terms, the financial institution must obtain written consent from at least one of the deposit account holders. Additionally, a financial institution cannot initiate the closure of a deposit account without first sending a notice of intent to close the account to at least one of the deposit account holders. The notice must be sent at least 30 days before the closure, except in cases where the financial institution suspects check-related fraud or insufficient funds, in which case the notice may be sent on the same day as the closure. The document defines ‘deposit account’ as a contract of deposit of funds between a depositor and a financial institution, including checking accounts, savings accounts, certificates of deposit, share accounts, and similar arrangements. ‘Financial institution’ is defined as any organization authorized to do business under state or federal laws relating to financial institutions, such as banks, trust companies, savings banks, savings associations, industrial loan and thrift companies, and credit unions.
Whom does it apply to?
Financial institutions
What does it govern?
Transfer and closure of deposit accounts
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota